Corn futures are slightly lower at midday. USDA's Crop Production report was bearish with the production estimate of 12.761 billion bushels coming in over 250 million bushels above the average pre-report trade estimate. But losses are being limited by USDA's increased usage estimates in the Supply/Demand report. Even with the higher production, ending stocks for 2009/10 are projected to be 1.621 billion bushels, about 75 million below trade expectations. September is 1/4 of a cent lower at $3.26 1/4 and December is 3/4 of a cent lower at $3.30 1/4.

Soybean futures are trading lower at midsession. Despite neutral to supportive USDA reports, futures have declined led by old-crop months. Profit-taking from the gains on Tuesday and generally favorable crop weather are bearish factors. USDA pegged soybean production at 3.199 billion bushels, down slightly from trade expectations. Ending stocks for 2009/10 were pegged at 210 million bushels, which was also near trade ideas. September is 10 cents lower at $10.87 1/2 and November is 4 1/4 cents lower at $10.34 1/4.

Wheat futures are lower at midday and have hit new lows at all three exchanges. USDA pegged 2009 U.S. wheat production at 2.184 billion bushels, beating trade expectations by about 30 million. In addition, world wheat production for 2009/10 was forecast at 659.3 million tonnes, up 2.8 million from last month. The MGE is being pressured by "other spring" wheat production being pegged at 548 million bushels, up 25 million from trade expectations. CBOT Sep is 6 cents lower at $4.79 1/4, KCBT Sep is 6 1/2 cents lower at $5.10 1/2 and MGE Sep is 12 cents lower at $5.56 3/4.

Cattle futures are trading higher at midsession. Demand for deliveries is supportive for the August contract while deferreds have been pulled higher by strength in beef prices. Boxed beef prices were firm on Tuesday in good volume trade with choice cutouts up 77 cents. Expectations are for steady to higher cash trade this week due to tightening fed cattle supplies and improved packer margins. August is 70 cents higher at $84.00 and October is 60 cents higher at $88.28.

Lean hog futures are mostly higher at midday. August is lower and has fallen to the lowest level for a spot contract in 6 1/2 years. Further weakness in the cash market and the $1.05 decline in pork cutouts are pressuring the nearby. But deferreds have turned higher on short-covering from technically oversold levels. August is 28 cents lower at $47.90 while October is 65 cents higher at $45.00.