Corn futures are trading strongly higher at midsession. USDA lowered the ending stocks estimate for 2008/09 and the 2009/10 estimate was below trade expectations. USDA trimmed ending stocks by 100 million bushels for the current marketing year to 1.6 billion and for the next marketing year USDA has ending stocks declining 1.145 billion bushels. Slow corn planting progress, firm crude oil prices and a weaker dollar are also supportive factors. Corn planting as of Sunday was 48%, versus the 5-year average of 71%. July is 9 cents higher at $4.30 1/4 and December is 8 3/4 cents higher at $4.49.



Soybean futures are mixed at midday. Profit-taking is weighing on old-crop months while new-crop trade is higher. USDA's ending stocks projections were right on trade expectations. For the current crop year, ending stocks were lowered to 130 million bushels from 165 million last month. For the next marketing year, stocks are only expected to increase to 230 million bushels. The slow pace of planting, 14% as of Sunday versus the 5-year average of 25%, is bullish for new-crop as late planting will lower yield potential. July is 5 3/4 cents lower at $11.10 1/4 and November is 1 3/4 cents higher at $9.84 3/4.



Wheat futures are mixed at midsession. The market is being supported by the smaller than expected winter wheat production estimate and slow spring wheat planting progress, but increased projections for world wheat ending stocks are limiting gains. World wheat ending stocks in 2009/10 are expected to rise 9% to 181.7 million tonnes. USDA pegged winter wheat production at 1.502 billion bushels, down 25 million from trade expectations. USDA estimated 2008/09 ending stocks at 669 million bushels, down 27 million from last month. For 2009/10, the ending stocks projection of 637 million bushels was right on pre-report trade estimates. CBOT July is 2 1/4 cents lower at $5.88 1/2, KCBT July is 1/4 of a cent higher at $6.34 1/4 and MGE July is 1 3/4 cents higher at $6.99 1/4.



Cattle futures are trading mixed at midsession. Technical buying and ideas that cash trade will be higher this week initially supported futures. Traders are looking for $1-$2 higher trade as packers are short-bought. Boxed beef prices turned slightly higher on Monday. But the market has turned mixed on some profit-taking following the recent run-up. June is unchanged at $83.28 and August is 20 cents lower at $83.70.



Lean hog futures are up strongly at midday. Further gains in the cash market are helping to fuel the rally in futures. June has hit a 2 1/2 week high as the market recovers from the H1N1 flu scare. Pork prices have rebounded and the restrictions on pork exports that came from the flu outbreak are expected to be short-lived. June is $1.18 higher at $68.95 and August is 90 cents higher at $71.15.