Corn futures are trading higher at midday. USDA's Supply/Demand report was very bearish, but corn futures have turned higher amid the sharp gains in crude oil, gold and weakness in the dollar. USDA made surprisingly large cuts in demand. Exports were lowered by 100 million bushels and corn for ethanol was cut by 300 million bushels. Ending stocks were raised 350 million bushels while traders were looking for only about a 100 million bushel increase. March is 6 cents higher at $3.48 and July is 6 cents higher at $3.69.



Soybean futures are solidly higher at midsession. The Supply/Demand report was relatively neutral as USDA left ending stocks at 205 million bushels. Crush was lowered 30 million bushels, but exports were raised that amount. However, the market is being supported by the rally in crude oil and gold this morning and the drop in the dollar index. Weekly export sales reported this morning were strong and beat pre-report trade expectations at 29.8 million bushels. January is 16 1/2 cents higher at $8.46 and March is 15 1/2 cents higher at $8.50 1/4.



Wheat futures are trading narrowly mixed at midday. USDA's Supply/Demand report was bearish, but outside markets have helped stabilize crop trade. Ending stocks were raised 20 million bushels to 623 million, while traders were looking for a small decline. In addition, weekly export sales reported this morning were sluggish again at only 8.8 million bushels. However, the rally in crude oil and gold and break in the dollar index are supporting trade. CBOT March is 2 cents lower at $5.07 1/2, KCBT March is 2 cents higher at $5.33 1/4 and MGE March is 2 1/4 cents lower at $5.89.



Cattle futures are trading mostly lower at midsession. The discount of futures to cash and weakness in the dollar were initially supportive factors. A cheaper dollar will benefit beef exports. However, continued weakness in beef prices and the recent decline in the cash market helped push futures slightly lower. February is 8 cents lower at $83.73 and April is 13 cents lower at $85.35.



Lean hog futures are lower at midday. The market is being pressured by technical weakness after yesterday's break in prices and futures premium to the cash market. Traders remain concerned about pork prices. Pork cutouts were down 75 cents on Wednesday and are expected to continue lower as seasonal ham demand is completed. February is $1.10 lower at $62.03 and April is 95 cents lower at $67.65.