Corn futures are trading lower at midsession. Strong losses in crude oil and weakness in the stock market are weighing on corn prices. USDA projections from the Agricultural Outlook Forum were bearish with production forecast at 12.365 billion bushels, up from 12.1 billion last year. USDA is only estimating a small decline in ending stocks next year. March is 6 1/4 cents lower at $3.55 3/4 and May is 5 1/4 cents lower at $3.65 1/4.



Soybean futures are mixed at midday, with new-crop futures lower. The drop in crude oil and the stock market have been bearish factors for futures. But front end contracts have turned higher due to a short-covering bounce. New-crop months are being pressured by USDA's Outlook Forum projection for soybean production to rise to 3.24 billion bushels in 2009 from 2.959 billion last year. Ending stocks are seen growing to 380 million bushels from 205 million this marketing year. March is 2 1/4 cents higher at $$8.71 1/2 while November is 9 1/2 cents lower at $8.28 1/2.



Wheat futures are lower at midsession. The market is being pressured by spillover weakness from corn and soybeans along with strength in the dollar. Global wheat demand is a concern given the slowing world economy. However, losses are being limited by USDA's Outlook Forum forecast for the 2009 U.S. wheat crop to be 2.12 billion bushels, down from 2.5 billion last year. CBOT March is 3 1/2 cents lower at $5.10 1/2, KCBT March is 2 1/2 cents lower at $5.51 3/4 and MGE March is 1/2 of a cent lower at $6.25 3/4.



Cattle futures are trading slightly higher at midday. Expectations for firm cash trade are supporting the market. Light cash developed yesterday in the North up $1-$2 from last week on a dressed basis. But gains in the cash market are expected to be limited by weakening beef prices. Choice cutouts were down $1.42 on Thursday. April is 45 cents higher at $86.28 and June is 55 cents higher at $84.30.



Lean hog futures are strongly higher at midsession. Concern over the economy and lower stock market initially weighed on prices, but futures turned higher on signs of improvement in cash market fundamentals. Pork cutouts were up slightly on Thursday and with the recent weakness in the cash market, packer margins have turned positive. April is $1.73 higher at $60.70 and June is $1.23 higher at $72.50.