Corn futures are sharply lower at midsession with limit losses being seen. USDA revisions for corn were bearish for prices with production and December 1 corn stocks higher-than-expected. Corn production for 2011 is estimated at 12.358 billion bushels, up 48 million bushels from November, while the trade was anticipating a decrease. December 1 stocks, at 9.642 billion bushels, came in nearly 250 million bushels above trade expectations. U.S. ending stocks are projected at 846 million bushels, down only 2 million from December, but about 100 million above trade expectations. March futures are 40 cents lower at $6.11 1/2 and May is 40 cents lower at $6.18 1/4. 

Soybean futures are strongly lower at midday. USDA reports this morning were net fundamentally bearish. USDA increased its forecast for U.S. 2011/12 soybean ending stocks by 45 million bushels to 275 million. USDA’s final estimate of production for the 2011 crop was increased by 10 million to 3.056 billion bushels. Those are bearish revisions. On the bullish side, USDA lowered its forecasts for South American production and it lowered its forecast for global ending stocks. USDA reported the quarterly stocks of soybeans at 2.366 billion bushels. That was above expectations, but consistent with the crop itself totaling larger than expected. January is 29 1/2 cents lower at $11.68 and March is 31 1/2 cents lower at $11.71 1/2.  

Wheat futures are trading sharply lower at midsession. Of three significant reports released by USDA this morning, only one (Dec. 1 Grain Stocks) was even slightly friendly. The other two were bearish, with 2012 Winter Wheat Seedings especially bearish. For December 1 stocks, USDA came in at 1.656 billion bu., 39 million below the average pre-report trade. But total winter wheat seedings for 2012 came in at 41.947 million acres, up 3.2% from 40.646 million in 2011 and more than a million acres higher than the average pre-report trade estimate. Global ending stocks for 2011/12 were raised by a net 1.5 million metric tons. CBOT March is 41 1/4 cents lower at $5.99 3/4, KCBT March is 40 cents lower at $6.61 3/4 and MGE March is 15 1/4 cents lower at $8.01 1/4.  

Cattle futures are trading mostly lower at midday. The nearby February contract is slightly higher as traders remain uncertain about the direction of the cash market this week. Packer processing margins are poor, but showlists are smaller this week and packers are short-bought. Deferreds are being pressured by declining beef prices and the sharp decline in corn prices this morning. February is 25 cents higher at $121.58 while April is 8 cents lower at $125.23.

Lean hog futures are mixed at midsession. Nearby hog contracts are trading higher on short-covering amid ideas that the losses on Wednesday were overdone and on the strong tone in the cash market. But later deferred months are being pressured by the sharp decline in corn prices, which could encourage increased pork production. February is $1.15 higher at $84.05 and April is 95 cents higher at $86.75.