Comments: Grain and soybean futures action was mixed last week with corn futures rallying on low private estimates of U.S. production, which overshadowed worsening macroeconomic concerns. Wheat futures were pulled higher by the corn market strength and rising concerns about the continued drought in the U.S. southern Plains, while soybean futures buckled under pressure from slow demand, economic worries and forecasts for cooler weather to ease crop stress. Grain futures trade is likely to remain volatile with economic concerns rising further following the downgrading of the U.S. credit rating by S&P and uncertainty about crop production high heading into Thursday's USDA Monthly Crop Report, which will offer the first survey estimate of 2011 U.S. corn and soybean output. Livestock futures bucked pressure from macroeconomic worries last week, moving higher on support from strong cash market fundamentals. A $3-$4 rise in Plains direct cash cattle markets boosted live cattle futures, while record wholesale pork and hog prices underpinned lean hog futures. Cotton futures came under renewed pressure from weak demand and negative economic indicators.
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