Corn futures are trading slightly lower midmorning. The market is trading relatively quiet at the moment with some improvement in prices but still lower than the previous close. Prices will continue to see support from the long term bullish outlook of the market, tight supplies, and the need to ration demand. News across the wire this morning reports analysts’ estimate 2012 corn yield down at 121.5 bushels per acre (a 16 year low) with production at 10.5 billion bushels (an 8 year low). September corn is trading 3/4 cents lower while December corn is trading 3 cents lower.

Soybean futures are trading 11 to 12 cents lower midmorning. Prices have advanced during the morning session but remain relatively lower as pressure from non commercial selling limits market advances. However, the fundamentals of the market remain intact and will continue to support futures. The ProFarmer crop tour reports speculate that USDA may reduce production further in the September WASDE report. News across the wire this morning reports analysts’ estimate 2012 soybean yield at 36.6 bushels per acre (an 8 year low) with production at 2.713 billion bushels (an 4 year low).

Wheat futures are trading 3 to 7 cents lower midmorning. Due to lack of fresh news, the market is trading quiet and will most likely trade in the direction of the other grain crops. The lower dollar index and speculative talk of dwindling global supplies may spur renewed buying interest in U.S. wheat. Longer term fundamentals may prove to be supportive for the market as wheat reductions continued to roll in concerning Russia and the Black Sea Region, however, the market is trading on the short term outlook at the present moment.

Cattle futures are trading mixed but mostly lower midmorning. The front month August contract is slightly higher as traders cover their short positions after CME reported no new deliveries on the contract yesterday. On the other hand, deferred contracts are under pressure as demand for beef products begin to fade ahead of the Labor Day weekend. USDA’s Cold Storage report is set to be released today and analyst estimated beef stocks higher at 478 million pounds versus 470.8 million pounds in June. Cash trade remains undeveloped but prices are anticipated to be steady to higher.

Lean hog futures are trading sharply lower midmorning. Declining wholesale pork prices and lower bids during cash trade are weighing heavily on midday hog futures. Although rising corn prices are a concern in reference to the costs of production, traders are more concerned about the increased movement of pork through the supply chain. Analysts’ are estimating July cold storage pork inventory at 561.8 million pounds, 29.9 million pounds lower.