Corn futures are trading moderately lower at midsession with the March contract dipping to a new low of $2.00. USDA raised 2004 production by 80 million bushels to 11.8 billion. Carryover stocks were pegged at 1.96 billion bushels and could push above 2 billion bushels if feed usage fails to meet USDA's aggressive forecast. March is 5 cents lower at $2.01 3/4.

Soybean futures are lower at midday. USDA revisions were small and neutral, but prices are lower as December 1 stocks are record large. Carryover was lowered 25 million bushels to 435 million, but is still 323 million higher than last year. March is 3 1/2 cents lower at $5.39 3/4.

Wheat futures have turned lower after some bullish winter wheat seeding number. USDA pegged 2005 winter acreage at 41.6 million acres, well below the average pre-report estimate of 43.2 million. On the bearish side, USDA raised carryout to 583 million bushels from 553 million last month. CBOT Mar is 1 cent lower at $3.05 1/2, KCBT Mar is 2 cents lower at $3.35 3/4 and MGE Mar is 3 1/4 cents lower at $3.41.

Cattle futures are lower at midday. Overbought conditions following yesterday's rally is weighing on the market. However, fundamentals have improved with strong gains in boxed beef prices and ideas that another case of BSE in Canada may keep the Canadian border closed to cattle imports. February is 43 cents lower at $91.45.

Lean hog futures are trading lower at midsession. After posting new highs, the market has slipped amid overbought conditions following yesterday's strong gains. The premium of futures to cash is a limiting factor as well. February futures are 15 cents lower at $76.90.