Corn futures settled lower on Thursday. USDA's production figure of 10.745 billion bushels was about 100 million bushels below the average pre-release estimate. The report was viewed as supportive, but futures were unable to move higher. Selling pressure picked up the last hour of trade as the market made a corrective pullback from recent gains. December closed 7 3/4 cents lower at $3.50. March settled 7 1/2 cents lower at $3.66.

Soybean futures closed lower on Thursday. Trade was choppy, but spillover weakness from corn and wheat kept prices on the defensive despite a lower than expected soybean production estimate. USDA pegged the crop at 3.204 billion bushels, a new record, but below the average trade guess of 3.24 billion. November closed 8 3/4 cents lower at $6.57 1/2 and January was 8 1/2 cents lower at $6.69 1/2.

Wheat futures ended lower on Thursday. The market sold off rather sharply in the wake of USDA's Supply/Demand report. The report was in line with trade expectations but the negative market reaction suggests that the long running wheat bull market is nearing exhaustion. CBOT Dec was down 16 cents at $4.88. KCBT Dec was 16 3/4 cents lower at $5.14 3/4. MGE Dec was 13 1/4 cents lower at $5.01.

Cattle futures closed mixed on Thursday. The market managed a respectable close despite a $3 decline in the cash market yesterday afternoon. Cutout values continued to slide this morning but the beef market should rebound solidly next week as retailer attention shifts to post Thanksgiving features. December was 42 points higher at $85.87. February was down 10 points at $89.10. November feeder cattle gained 152 points to close at $100.47.

Lean hog futures closed lower on Thursday, pressured by weakness in the cash market. Cash prices have been gradually weakening for the last several days while many futures contracts continued to march higher. Unless cash prices can turnaround, further declines in futures prices seem likely. December ended 60 cents lower at $64.70 and February was down 80 cents at $67.85.