Corn futures are strongly higher at midday. USDA's Supply/Demand report was bullish for corn. The 2011 corn production estimate was lowered by 305 million bushels from last month to 13.2 billion bushels. The production cut from last month is based on lower acreage due to planting delays and flooding. Ending stocks for 2011/12 are projected to be 695 million bushels, down 205 million bushels from May and 35 million below year-ago. July is 23 cents higher at $7.87 and December is 20 1/2 cents higher at $7.14 1/4.
Soybean futures are trading slightly lower at midsession. USDA's bearish Supply/Demand report is weighing on the market, although strength in corn is limiting losses. The major negative was a jump in the new-crop ending stocks forecast of 30 million bushels to 190 million. Only a small increase was expected. USDA added 10 million bushels to ending stocks for the 2010/11 crop and cut exports for 2011/12 by 20 million bushels. Slower demand from China and an increased estimate for Brazil's soybean crop led to the cut in the export projection. July is 1 1/4 cents lower at $14.00 1/4 and November is 1 1/2 cents lower at $13.91.
Wheat MGE July contract. Revisions in the U.S. supply/demand outlook were mixed in terms of price impact. USDA unexpectedly cut ending stocks for the 2010/11 marketing year, but also failed to cut 2011 production at all and reduced ending stocks less than expected. Global balance sheet revisions were decidedly bearish. USDA raised beginning stocks for the 2011/12 marketing year by nearly 5 million tonnes, resulting in a 3 million tonne hike in global ending stocks. CBOT July is 1 cent higher at $7.49, KCBT July is unchanged at $8.85 and MGE July is 35 1/2 cents higher at $10.57.
Cattle futures are trading higher at midsession. Strength in the cash market this week, rising corn prices and an increased beef export estimate from USDA are supporting prices. Cash trade developed at $105-106 earlier this week, up from the bulk of trade last week at $104. USDA is forecasting 2011 beef exports at 2.593 billion pounds, up nearly 5% from the May estimate. August is $1.18 higher at $105.73 and October is $1.35 higher at $112.10.
Lean hog futures are higher at midday. Higher corn prices and an increase in USDA's pork export forecasts are supporting the market. USDA is projecting pork exports to be 4.872 billion pounds, up over 4% from the May estimate. In addition, pork cutouts were up 47 cents on Wednesday and cash markets have stabilized after starting the week lower. July is $1.25 higher at $92.60 and August is 95 cents higher at $91.85.