Corn futures are strongly higher at midday. USDA reports released this morning were bullish. Corn production was pegged at 12.447 billion bushels, down 93 million from the previous report and 55 million below trade estimates. The lower production estimate also caused December 1 corn stocks to come in about 40 million bushels below expectations. Ending stocks are projected at 745 million bushels, down 87 million from December. At 5.5% of annual use this represents minimal or a pipeline level of ending stocks. March is 25 3/4 cents higher at $6.32 3/4 and May is 26 cents higher at $6.41 1/4.
Soybean futures are sharply higher at midsession. The USDA reports released this morning were bullish for the market. The crop production number for 2010 was much smaller than anticipated. USDA projects U.S. stocks at historically low levels. USDA cut its estimate of 2010 soybean production by 46 million bushels to 3.329 billion. USDA reduced its forecast for 2010/11 ending stocks by 25 million bushels to 140 million. The new USDA outlook was below the average pre-report forecast from industry analysts at about 160 million. January is 60 3/4 cents higher at $14.11 1/4 and March is 60 cents higher at $14.17.
Wheat futures are trading higher at midday. The Winter Wheat Seedings report was neutral as the winter wheat acreage estimate of 40.99 million acres was near trade expectations. However, Supply/Demand revisions were bullish for wheat and spillover support is coming from the sharp gains in corn and soybeans. USDA raised projected 2010/11 U.S. exports by 50 million bushels from December and cut estimated feed use by 10 million bushels resulting in a decrease in ending stocks by 40 million bushels. CBOT March is 17 1/4 cents higher at $7.76 3/4, KCBT March is 16 1/4 cents higher at $8.54 1/4 and MGE March is 15 3/4 cents higher at $8.81.
Cattle futures are trading strongly higher at midsession with futures trading at contract highs in most contracts. Strength in corn following the bullish Supply/Demand revisions is supporting cattle futures. Cold weather in the Plains is hurting feedlot performance. The wintery weather and strength in boxed beef prices are expected to support the cash market this week. February is $1.30 higher at $109.75 and April is $1.20 higher at $113.98.
Lean hog futures are higher at midday with new contract highs set in most months. Strength in pork cutouts values on Tuesday of $1.52 and the rally in corn futures are supporting the market. Rising feed costs are expected to limit pork production. Wintery weather in the Midwest is hampering hog marketings and coupled with firm pork prices are supporting cash market trade. February is 83 cents higher at $80.80 and April is $1.05 higher at $86.20.
Cotton futures are trading sharply higher this morning. USDA reports this morning were bullish. Revisions for the U.S. balance sheet were minimal, but global revisions were bullish. World ending stocks were lower 550,000 bales. March is 340 points higher at 150.65 cents and may is 297 points higher at 146.15 cents.