Corn futures are trading lower at midday. Futures have slipped to new contract lows on bearish USDA data. USDA left 2004-05 carryover unchanged at 2.215 billion bushels, but 2005-06 carryover was pegged at 2.540 billion bushels, nearly 350 million above trade expectations. July is 3 cents lower at $2.03 1/2.

Soybean futures are trading lower at midsession. After a firm open and supportive USDA supply/demand numbers, the market turned lower. Fund selling is weighing on the market despite USDA cutting 2004-05 carryover 20 million bushels to 355 million. Ending stocks in 2005-06 are expected to fall to 290 million bushels, which is nearly 75 million below trade expectations. July is 8 3/4 cents lower at $6.24 1/4.

Wheat futures are lower at midday. Bearish USDA production and supply/demand estimates, spillover weakness from soybeans, and sluggish weekly export sales are all weighing on futures. USDA pegged winter wheat production at 1.591 billion bushels, up 35 million from expectations and 92 million above last year. CBOT July is 5 3/4 cents lower at $3.08, KCBT July is 3 1/2 cents lower at $3.13 and MGE July is 4 lower at $3.26.

Cattle futures are trading mostly higher at midsession. Futures discount to cash and some technical strength has helped the market rally. Gains are being limited by recent weakness in boxed beef prices. June is 43 cents higher at $86.88.

Lean hog futures are trading higher this morning. Improved packer margins and pork cutout gains of $1.78 yesterday were supportive. Futures are higher despite cash trade being mostly steady to lower again today. June is 53 cents higher at $76.75.