Corn futures closed lower on Wednesday. Corn futures were pressured by the following factors: 1) rapid pace of the 2012 corn harvest, 2) tumbling soybean futures and 3) pre-WASDE position squaring. The October WASDE is scheduled to be released at 7:30am CDT and is expected to show a significant decline in corn production. Pre report trade estimates peg the average production of the 2012 corn crop at 10.601 billion bushels, 126 million bushels below the September estimate. The average of trade estimates pegged ending stocks at 648 million bushels, 85 million bushels below the September estimate. December corn closed 5 ¾ cents lower.

Soybean futures closed lower on Wednesday. Soybean futures plummeted midweek on long liquidation ahead of tomorrow’s WASDE estimates along with an improved crop outlook for soybeans. Pre report trade estimates forecast soybean production at 2.759 billion bushels with an average yield of 37.006 bushels per acre. Both estimates are above USDA’s September forecast. Ending stocks are also projected higher at 134 million bushels versus 115 million bushels estimated in September. Expectations for a huge soybean crop out of South America was also bearish for futures. The November soybean contract closed 26 ¼ cents lower.

Wheat futures closed higher on Wednesday. Wheat futures sustained firm gains despite weakness in the other grain markets. Prices were supported by global supply worries as Australian and Russian wheat production is expected to be reduced significantly in tomorrow’s WASDE report. Pre report trade estimates peg global ending stocks (average) at 172.813 million tonnes, 3.897 million tonnes below USDA’s September estimate of 176.710 million tonnes. The trade is also expected U.S. global stocks to decline below the September estimate of 698 million bushels to 630 million bushels. December wheat at CBOT closed 5 ¾ cents higher, KCBT closed 8 ¾ cents higher, and MGE closed 5 ¾ cents higher.

Live cattle futures close mixed on Wednesday. Live cattle futures ended mostly lower as wholesale beef prices slumped. Midday boxed beef prices were reported 4 cents lower ($191.16) for choice and 36 cents lower (176.93) for select cuts. However cash trade optimism supported the nearby contract as well as zero delivery notices before expiration. Packer margins continue to improve and traders believe bids will rise as a result. Cash trade has yet to develop is expected to be steady versus the previous week. October closed 22 cents higher while December closed 15 cents lower as well as first half 2013 contracts.

Lean hog futures closed sharply higher on Wednesday. Hog futures closed impressively higher after slight pressure around midsession. Nearby 20121 and Feb 2013 contracts both jumped over 1.5 percent, posting gains over $1. A rebound in cash prices and strength in the pork carcass value helped to move prices higher. Cash hogs prices ranged from lower to higher, while Tuesday’s pork carcass was reported up $1.40 at $85.69. Futures were supported by pre holiday demand by grocers and retailers as well. October closed 68 cents higher while December closed $1.30 higher.