Corn futures are trading strongly lower at midday. USDA reports out this morning were fairly neutral, but weakness in soybeans and wheat are expected to pull prices lower. USDA raised corn ending stocks slightly from last month to 848 million bushels, up 5 million bushels from the previous month. Traders were looking for a small decline in ending stocks. March is trading 11 cents lower at $5.89 1/4 and Mary is 11 cents lower at $5.97 3/4.
Soybean futures are sharply lower at midsession. The bearish Supply/Demand report is weighing on the market. USDA raised its soybean ending stocks estimate to 230 million bushels, up 35 million from last month. This was a larger increase in ending stocks than the trade was expecting. USDA cut exports by 25 million bushels and lowered the soybean crush estimate by 10 million bushels. January is 25 1/2 cents lower at $11.07 and March is 25 3/4 cents lower at $11.16 1/2.
Wheat futures are trading lower at midday. USDA’s Supply/Demand report was bearish for the wheat market. For the U.S., ending stocks were raised 50 million bushels to 878 million, which was above the high end of trade expectations. USDA cut exports by 50 million bushels. World numbers were also bearish as USDA raised its world production number to a record 689 million tonnes, up 6% from the previous crop. Global ending wheat stocks were raised 5.9 million tonnes from last month. CBOT March is 8 cents lower at $5.89, KCBT March is 2 3/4 cents lower at $6.55 3/4 and MGE March is 2 1/4 cents lower at $8.19.
Cattle futures are trading lower at midsession. Declining beef prices and expectations for lower cash trade are weighing on futures. Choice cutouts were down $4.44 and select cuts were down $2.09 on Thursday. Boxed beef supplies are reportedly heavy, indicating sluggish demand. Cash trade has not yet developed this week, but lower prices are expected due to the poor packer processing margins. December is 98 cents lower at $118.45 and February is 73 cents lower at $118.88.
Lean hog futures are mixed at midday. Front end contracts are higher on short-covering and the $1.21 rally in pork cutout values. Cash bids are generally steady today. However, some deeper deferred contracts are lower amid USDA raising its pork production forecast for 2012. December is 73 cents higher at $85.55 and February is 15 cents higher at $87.40.