Corn futures are trading 10 to 12 cents higher at midday. Corn futures are posting strong gains at midday reversing yesterday’s losses. Prices support is tied to new reduction estimates for the 2012 corn crop. Farm futures magazine puts production at 9.57 billion bushels, Informa Economics lowers production to 10.33 billion bushels (120.7 bu/ac), while Doane economists peg production down at 10.79 billion bushels (123.1 bu/ac).

Soybean futures are trading 19 cents higher at midday. Soybean futures pushed passed early morning pressure, trading 1.2 percent higher at midday as private estimates roll in concerning the 2012 crop production output. Informa Economics lowers production to 2.79 billion bushels (37.2 bu/ac), while Doane economists peg production down at 2.72 billion bushels (36.6 bu/ac). With strong global demand for U.S. soybean the supply situation is expected to be even tighter if the current yields projections decline as expected. Trade is now focused on next week’s WASDE report, pushing weather forecasts aside for the moment.

Wheat futures are trading 21 to 27 cents higher at midday. Wheat futures followed corn and soy market higher at midday on renewed buying interest due to declining production estimates. Improved macro economic factors and the lower dollar index provided support to prices as well today. Also worth noting is potentially bullish news concerning global wheat production. Struggling wheat production in countries such as India, Argentina, Russia and Australia due to exceptionally dry weather will likely provide support to wheat prices in the long term.

Live cattle futures are trading mixed at midday. Cattle futures opened pit trade aggressively on higher cash prices and improvement in wholesale beef prices. Yesterday’s jump in bid prices closed the gap between packers and buyers while jumpstarting cash trade movement. Currently the market is trading sideways with slight pressure in deferred contracts. However, the lower dollar index and rally in the stock markets should limit losses.

Lean hog futures are trading sharply at midday. Hog futures are plummeted at midday, posting triple digit losses across the 2012 contracts. Initially, prices saw support from end of the week short covering and the rising stock markets. Gains could not be sustained as lower cash and the drawback in the pork carcass value and smaller hogs due to heat stress weighed on prices. However, deferred contracts should see support as the corn market post modest gains.

Cotton futures are trading 100 to 150 points higher at midday. Cotton futures are soaring at midday as the dollar index tanks and outside markets soar, causing rounds of speculative buying across commodities. U.S. jobs data was weak but investors are confident that as a result the Federal Reserve will produce measures to stimulate the economy.