Corn futures are trading locked limit up at midday. USDA cut the size of the 2006 crop to 10.535 billion bushels, down 210 million from the previous estimate. Ending stocks were cut to only 752 million bushels versus 935 million in December. The market is bulled up over strong demand projections for ethanol and exports. March is 20 cents higher at $3.96 1/2 and December is 20 cents higher at $3.94 1/2.

Soybean futures are sharply higher at midsession. The gains in corn are supporting the soybean market. With corn locked limit up, funds have turned their buying interest to soybeans. USDA cut 2006 production to 3.188 billion from 3.204 billion previously. However, ending stocks were raised 10 million bushels to 575 million. March is 40 1/4 cents higher at $7.14 1/2 and November is 37 3/4 cents higher at $7.61.

Wheat futures are strongly higher at midday. USDA wheat numbers were neutral to bearish, but strength in corn is supporting the market. USDA pegged ending stocks at 472 million bushels, up 34 million from last month. USDA lowered the export forecast by 25 million bushels. Winter wheat acreage was near expectations at 44.1 million acres, but that is up 9 percent from a year-ago. CBOT Mar is 28 cents higher at $4.84 1/2, KCBT Mar is 27 3/4 cents higher at $5.09, and MGE Mar is 28 cents higher at $5.10.

Cattle futures are mostly lower at midsession. The sharp rally in corn is weighing on cattle futures and sharp losses are being posted for feeder cattle. Nearbys are lower on ideas that cattle will be pulled forward and sold rather than fed longer while deferred futures are finding support from ideas that higher corn prices will reduce cattle feeding. February is 75 cents lower at $92.85 and April is 50 cents lower at $93.85.

Lean hog futures are trading mostly higher at midday. Some higher cash bids today are supporting the nearby contract. Deferreds are finding strength from ideas that rising corn prices could encourage producers to reduce hog numbers. February is 30 cents higher at $60.80 and June is 25 cents higher at $72.90.