Corn 
Corn futures are called steady to slightly lower. Traders were estimating combined weekly export sales for old and new crop would be between 650 and 850 thousand MT. USDA put the actual number at 862,100 MT for 2011/12 and 55,000 MT for 2012/13 this morning. Unknown commitments totaled 204,300 MT for both marketing years. Above normal temperatures and above normal precipitation are forecast for a large portion of the Corn Belt through April 4th, with the long range forecast which is not as reliable then suggesting a colder than normal spell for the eastern Midwest. Weekly ethanol production averaged 893,000 barrels per day, but ethanol stocks built up to 22.7 million barrels anyway. Progress is being made in rolling out E15, but until it becomes commercial the effective blend wall is about 12.6 billion gallons at the current inclusion rate according to the RFA. Chinese futures were down 4 cents and Globex was down 1/4 cent on the spot month and down 2 1/4 cents on new crop D ecember.

Soybeans 
Soybean futures are expected to start the day 5 to 7 cents lower. Bulls suggest farmers will plant more corn versus beans because of an early start to the season with warmer than normal temperatures. Traders estimated weekly export sales at between 900,000 and one million MT. USDA put the actual number at 356,700 MT for 2011/12 and sales of 176,100 MT for 2012/13 delivery this morning. China took all but 100 MT of the 2012/13 commitment. The combined total of both marketing years was way below trade estimates. The Argentine truck strike is in the fourth day with representatives from the trucking federation saying they are far from reaching an agreement. Global 2011/12 import trade is currently seen 15 million bushels LARGER than last year (March WASDE estimate) while the more bullish crop estimates have South American production down 800 million bushels. Chinese Jan-Feb imports were the largest on record for the period and are expected to accelerate between now and June. Chi nese futures were up 6 and Globex was down 7 1/4 cents.

Wheat 
Wheat futures are called steady on the open. Wire wags were looking for the USDA weekly export sales report to show between 400 and 500 thousand MT of wheat was sold for export last week. USDA put the actual number above guesses at 539,500 MT for 2011/12 and 2,000 MT for 2012/13 marketing year. The United Arab Emirates bought 30,000 MT of milling wheat from Argentina. China bought 350,000 MT of feed wheat from Australia this week for June/July shipment according to trade sources. The price was rumored to be $280/MT. Some US spring wheat producers have begun planting several weeks early due to warm temps and available moisture for germination. Wheat on Globex was basically steady at sessions close this morning.

Cattle 
Live Cattle futures are expected to trade higher on the open rebounding from end of day selling on Wednesday this morning. Cash cattle trade in the Five Area Direct Market saw a pickup in sales Wednesday. TX/OK cattle sold for $123 to $126, KC cattle sold for $126 in the live and $202 in the dressed, NE cattle were $126 to $128 in the live and $204 in the dressed. Last week's sales were $126 to $127. These prices were generally firmer than expected on Monday. Wholesale Choice beef prices were sharply lower narrowing the spread to $0.65 between Choice and Select. Choice was down $2.12 and Select was down $0.66. Estimated slaughter for the week to date is 373,000, down 1,000 from last week and up 1,000 from the same point in 2011. The USDA Cattle on Feed report will be released on Friday afternoon. Beef export sales were a whopping 52,000 MT! Shipments were 21,100 MT.

Hogs 
Lean Hogs are called are expected to open the session mixed. The CME Index is $88.12 for March 19th about $3 above spot futures. Cash hogs were $1.07 lower in IA/MN yesterday, down $1.40 in the WCB and down $1.08 in the ECB. That will tend to drag the average back down. Pork trading was moderate with mostly light to moderate demand and moderate to heavy offerings. The Carcass cutout was lower on 111.63 loads and dipped below $80. The USDA is still taking comment on the proposal to begin weekly reports of pork exports. January pork exports were unseasonably high out performing all previous Januarys on record. February census data won't be out until April, thus the need for more current USDA reporting. The Cold Storage report will be out this afternoon. Analysts expect to see an increase of stocks in Cold Storage.

Cotton 
Cotton futures are trading 56 points higher. Cotton planting has been delayed in Texas because of rains giving the market an initial boost today. Weather conditions in California are conducive to planting. Certificated stocks as of March 20th were 97,771 bales. The Cotlook A Index is up 1.20 at 98.85 cents/pound for March 19th. China's cotton imports were up 235% from a year ago for February according to the General Administration of Customs. The January-February imports were 65% higher than last year at 942,434 MT. Weekly export sales were expected to be 100-125,000 running bales. USDA put the actual number at 197,000 RB for 2011/12 and 87,100 RB for 2012/13 marketing year for Upland cotton. Net Pima sales were up 3,400 RB. The ICE futures exchange lowered initial margin requirements for speculators to $2,145 per contract down from $3,300 per contract.

There is substantial risk of loss to futures and options trading. Past performance is not indicative of future results.

By Donna Hughes
Lone Star Portfolio Advisors, Inc. was founded by Donna Hughes. Donna began her career in the industry in 1978 after graduating High School as a member of the Chicago Mercantile Exchange’s Inspection and Delivery Department where she was responsible for scheduling and facilitating the USDA grading and delivery for various Exchange Commodities. After 1 ½ years, she was offered a position working with George Segal, a prominent hedger in the Pork Belly market. It was through this relationship that she was mentored and taught the hedging process by working with Mr. Segal as well as other leaders of the Pork Industry. In 2004, Donna moved to Texas where her skills in the industry were utilized to help individual and corporate producers with their Risk Management Goals. Her Daily Market Commentaries are heard on the AllAgNews.com Radio Network broadcasting throughout Texas. She also contributes to magazines and periodicals including PetroEvents and Ag Monthly.

Donna created Lone Star and implemented strategic relationships with Daniels Trading and R.J. O’Brien leveraging their services to enable Lone Star to Build Lasting Relationships Thru Information, Execution and Research.