Corn futures are trading lower at midday. The USDA reports were mixed for corn this morning. USDA revised corn production down 123 million bushels from October to 12.310 billion bushels. The production estimate came in 70 million to 90 million bushels below trade estimates. However in the supply and demand update, USDA largely offset lower production by cutting use feed and residual use. Ending stocks fell 23 million bushels, but traders were looking for a larger cut. Outside markets are also weighing on the market as the stock market is sharply lower while the dollar index is higher. December is 3/4 of a cent lower at $6.59 3/4 and March is 1 3/4 cents lower at $6.69 1/4.   

Soybean futures are solidly lower at midsession. USDA’s soybean report was largely bearish, other than for a cut in the production estimate to 3.046 billion bushels from the previous forecast at 3.060 billion. USDA reduced demand by lowering the export forecast by 50 million bushels. Ending stocks increased 35 million bushels, nearly double what traders were expectations. USDA also raised its forecast for Brazil’s soybean production to 75 million tonnes from 73.5 million last week. Strength in the dollar and weakness in the stock market are also weighing on futures. November is 10 1/2 cents lower at $11.84 3/4 and January is 9 cents lower at $11.96. 

Wheat futures are trading lower (winter wheat) at midday. Both projected U.S. and global wheat ending stocks came in above pre-report trade expectations. The re-survey of spring wheat states by USDA cut the crop by just 9 million bu. vs. pre-report trade estimates averaging a 20 million bushel decline. Outside markets are also weighing on commodity trade due to renewed concern about European debt. The strong rally in the dollar index is a bearish factor for wheat exports. CBOT December is 7 cents lower at $6.50 and KCBT December is 12 1/4 cents lower at $7.26 1/4. However, the MGE is 12 3/4 cents higher at $9.59 due to tight spring wheat stocks.

Cattle futures are trading mixed at midsession. Strengthening boxed beef prices and ideas that cash market will be firm this week are supporting front end contracts. But gains are being limited by outside market pressure and limiting gains and weighing on deferred contracts. Renewed European debt concerns are weighing heavily on the stock market and the dollar index is sharply higher. December is 55 cents higher at $123.30 and February is 40 cents higher at $125.20.

Lean hog futures are lower at midday. The market is being pressured by pork cutouts declining $1.52 on Tuesday and the weak tone in the cash market. With several plants closed on Friday for Veteran’s Day, demand for hogs will be limited. Outside markets are also pressuring futures. Renewed concern about European debt is weighing heavily on the stock market and is supporting the dollar index. December is 33 cents lower at $84.90 and February is 8 cents lower at $87.25.