Corn futures are trading lower at midsession. Corn prices have rescinded from early morning highs with the July contract trading lower by 11 cents. Losses to the deferred contracts are being limited by lower 2012 corn yields as reported by USDA. Yield estimates were slashed to 146 bu/acre compared to 166 bu/acre in the June report. This equates to corn production estimates near 13 billion bushels. Ending stocks were lower than expected at 1.18 billion bushels. USDA also revised the projected farm level price to $5.90, up $1.30 from the previous month.

Soybean futures are trading 7 to 10 cents higher at midsession. Today’s bullish USDA supply/demand report is currently underpinning market prices. The trade reacted bullishly as USDA reported soybean yields at 40.5 bu/acre, down from 43.9 bu/acre in the previous month's report. Prices are also supported by strength in the soymeal market. The front month soymeal contract hit an all time high at $494.30 after the release of today’s report.

Wheat futures are trading 9 to 15 cents higher at midsession. Today’s supply/demand report was somewhat bullish for wheat prices in regards to the U.S. balance sheet. Wheat futures are trading higher after today’s report showed ending stocks lower than the average of analyts’ expectations at 664 million bushels. Globally the report was neutral for prices as ending stocks were reported close to pre report averages. USDA also increased average farm price by 60 cents/bushels, now reported at $6.20-$7.40 per bushel.

Cattle futures are trading mixed at midsession. Cattle futures are trading both sides of the market midmorning. Nearby contracts are under pressure from lower boxed beef prices, but expectations for steady cash trade are tempering losses. Notably, deferred contracts are supported by grain prices after USDA slashed yields estimates in this morning’s report.

Lean hog futures are trading mixed at midsession. Struggling cash and lower pork prices are weighing on nearby futures. However, deferred contracts are being supporting by declining hog weights due to rising grain prices. Also, USDA reported meat production lower than the previous month due to higher feed costs.