Corn futures are trading down the limit 30 cents at midsession. USDA reports this morning were bearish. USDA raised their 2008 crop estimate by 81 million bushels while cutting usage in most categories. Feed use was lowered 50 million bushels, ethanol use was cut 100 million and exports were pushed 50 million bushels lower. This led to the ending stocks forecast rising to 1.790 billion bushels, up nearly 300 million from pre-report trade expectations and 316 million above last month. In addition, crude oil futures are trading sharply lower this morning. March is 30 cents lower at $3.80 3/4 and May is 30 cents lower at $3.91 1/4.

Soybean futures are strongly lower at midday. USDA raised their ending stocks estimate to 225 million bushels from 205 million last month while traders were looking for a decline to around 190 million. A larger 2008 crop and decreased usage led to the increase. In addition to the larger soybean stocks, the market will contend with a sharp increase in corn stocks and higher wheat stocks outlooks. Winter wheat seedings were sharply lower, which implies the potential for more soybean acreage in 2009. March is 46 1/4 cents lower at $9.89 3/4 and May is 45 3/4 cents lower at $9.99 3/4.

Wheat futures are trading sharply lower at midsession. Larger than expected quarterly stocks led to an increase in USDA ending stocks estimate for this crop year to 655 million bushels from 623 million last month. Traders were looking for ending stocks to decline to 608 million bushels. Also bearish was the 1 million tonne increase in global ending stocks. The market has failed to find support from the sharply lower winter wheat seedings number. USDA pegged winter wheat acreage at 42.1 million, down 4.1 million from last year and 2.2 million below the average pre-report trade estimate. CBOT March is 49 3/4 cents lower at $5.79 3/4, KCBT March is 45 cents lower at $6.06 and MGE March is 45 1/2 cents lower at $6.34 3/4.

Cattle futures are mixed at midday. Short-covering from the losses last week and firm beef prices on Friday are helping to support the front end contract. But deferreds are lower on pressure from strength in the U.S. dollar which may hamper exports and weakness in the corn market. February is 15 cents higher at $83.25 while April is 8 cents lower at $86.75.

Lean hog futures are trading lower at midsession, led by losses in the summer months. Speculative selling is weighing heavily on the market although front end losses have been limited by short-covering and concern about the cold weather moving into the Midwest. February is 40 cents lower at $62.05 and June is $1.20 lower at $79.55.