Corn futures are trading locked limit down at midsession. Acreage and Grain Stocks reports from USDA this morning were bearish for prices. Acreage is pegged at 92.3 million acres, up 104,000 acres from planting intentions. This compares to trade expectations for a 1.4 million cut in acreage from intentions to 90.8 million. June 1 corn stocks were an even larger bearish surprise than acreage, with stocks estimated at 3.670 billion bushels, 368 million above the average of trade estimates. Look for USDA to cut feed and residual use and boost 2010/11 ending stocks in the supply and demand update on July 12. September is down 30 cents at $6.48 and December is 30 cents lower at $6.20 1/2.
Soybean futures are lower at midday, but losses are moderate compared to the sharp declines in corn and wheat. USDA released bullish acreage views for soybeans that were partially offset by more soybean stocks on June 1 than most had expected. While in total the news was moderately friendly for soybeans, it is being negated by weakness in corn. USDA reduced its forecast for soybean plantings to 75.2 million acres from its previous forecast at 76.6 million. USDA reported June 1 stocks at 619 million bushels, which is about 20 million bushels more than expected. August is 17 1/4 cents lower at $13.10 1/4 and November is 14 3/4 cents lower at $13.07 1/4.
Wheat futures are sharply lower at midday. USDA reports were mixed for wheat this morning, but spillover weakness from corn and the bearish Stocks report are weighing on futures. June 1 Acreage was supportive as total wheat acreage was pegged at 56.4 million acres, down 1.3 million acres from its June WASDE estimate and down about 240,000 from the average pre-report trade estimate. However, acreage planted to spring wheat was above trade expectations while durum was down sharply. June 1 wheat stocks of 861 million bushels were 35 million above trade expectations. CBOT September is 52 1/4 cents lower at $6.22, KCBT September is 51 1/2 cents lower at $7.12 1/2 and MGE September is 51 1/2 cents lower at $7.98.
Cattle futures are trading lower at midsession, led by weakness in deferred contracts. Sharp losses in corn and prospects for cheaper feed are weighing on deferred contracts with ideas of increased beef production. Front end futures have been pulled lower as well. Larger showlists this week and slipping beef prices are likely to keep the cash market in check with last week. So far, no cash trade has been reported this week. August is 63 cents lower at $110.95 and October is $1.40 lower at $117.00. Contracts for 2012 are down $2.25 to $2.50.
Lean hogs futures are sharply lower at midday. Deferred contracts are leading the weakness with 2012 contracts down the $3 limit. The weakness in corn this morning is driving ideas of increased pork production in 2012. Front end futures have been pulled lower and cash hog prices are mostly steady to $1 lower. Packer demand is being limited by reduced slaughter schedules during the July Fourth holiday weekend. July is 63 cents lower at $94.60 and August is $1.03 lower at $92.15. Contracts for 2012 are down the $3 limit.