Corn futures are trading 10 to 11 cents lower midmorning. Corn prices continue to decline midmorning as updated weather forecasts predict rains for the Midwest region later in the week. Prices began to descend in the overnight session as traders squared positions ahead of tomorrow’s USDA supply/demand report. Market losses are being limited by current drought conditions in the Midwest. Although rain is forecasted in the near future, traders fear it too late based on declining crop condition ratings. Monday’s crop progress report showed corn’s good to excellent condition down 8 percentage points from the previous week.

Soybean futures are trading mixed midmorning. Soybean prices are rebounding from morning lows although still trading lower. Soybean futures plunged in the overnight session on profit taking ahead of tomorrow’s USDA supply/demand report. Late week forecasts for rain across the Midwest are pressuring prices today, but damage from weeks of hot dry conditions are limiting losses. Monday’s crop progress report reported soybean condition ratings down 5 percentage points from the previous week at 40 percent good to excellent. The report also showed soybean blooming at 44 percent, well above the five year average of 25 percent.

Wheat futures are trading 3 to 6 cents lower midmorning. Profit taking and spillover pressure from the corn market are weighing on wheat prices this morning. Losses are being lessened by further declines in spring wheat condition ratings and news that Russia, Ukraine, and Kazakhstan plan to reduce their harvest forecasts and total grain output for 2012. USDA reported spring wheat down 5 percentage points lower than the previous week, at 66 percent, but it seems the trade is looking past crop progress results and looking ahead to tomorrow’s USDA supply/demand report.

Cattle futures are trading lower midmorning. Plunging choice boxed beef prices are pulling cattle futures lower midmorning. USDA reported choice beef down a whopping $2.14 at $190.51. Cash trade is anticipated to pick up later in the week, with prices called steady at best, which should lend support to prices.

Lean hog futures are trading lower midmorning. Hog futures are under pressure from declining pork cutout values, poor packer margins and weakening fundamentals. On Monday, USDA reported pork cutouts down 51 cents at $90.13 per cwt. Cash trade is expected to remain sluggish and prices are expected to be 50 cents to $1 lower.