Corn futures are trading lower at midday and have fallen to contract lows. Fund selling has returned to the market after some light short-covering in recent days. Large global feed grain stocks remains an underlying bearish factor. March is 1 3/4 cents lower at $1.95 1/4.



Soybean futures are slightly lower at midsession. Losses are limited following yesterday's decline that was driven by weaker gulf basis levels. Futures are hovering near contract lows as the market continues to be pressured by the large U.S. crop and mostly favorable growing conditions in South America. March is 1 cent lower at $5.06.



Wheat futures are lower at midday. The lack of export business and Statistics Canada's wheat stocks estimate at up 17 percent from year-ago is weighing on the market. Large global supplies will keep export competition stiff. CBOT Mar is 3 1/2 cents lower at $2.88 3/4, KCBT Mar is 2 3/4 cents lower at $2.88 3/4 and MGE Mar is 3 3/4 cents lower at $3.37.



Cattle futures are trading lower this morning. Light profit-taking from recent gains is weighing on the market. Cash trade is still expected to be steady to firm this week and there are signs that the beef market is bottoming. February is 3 cents lower at $90.75.



Lean hog futures are strongly lower at midsession. Technical weakness coupled with lower cash bids are negative factors for the market. Cutouts were down nearly $1 yesterday and packer margins are negative. February is 133 cents lower at $72.30.