Corn futures are trading lower at midsession. Profit-taking and spillover selling from soybeans are weighing on the market. USDA's supply/demand report was slightly supportive in that USDA left ending stocks unchanged at 1.79 billion bushels while traders were looking for a 30-35 million bushel increase. USDA cut South American corn production numbers, but world ending stocks were increased due to reduced usage estimates. March is 4 1/2 cents lower at $3.73 and May is 4 1/2 cents lower at $3.83 3/4.



Soybean futures are trading lower at midday. USDA lowered their soybean ending stocks estimate to 210 million bushels from 225 million last month. However, traders were looking for a bigger decline. USDA significantly cut production for Argentina and Brazil, but these cuts were already in the market. Recent rainfall has helped ease the stress on Argentina's soybean crop, although forecasts call for a drying trend over the next week to ten days. March is 11 1/2 cents lower at $9.90 1/2 and May is 11 1/2 cents lower at $9.96.



Wheat futures are lower at midsession. There were few changes in the Supply/Demand report, but wheat futures turned lower along with soybeans. USDA left U.S. ending stocks at 655 million bushels. World numbers were slightly bearish as USDA raised world ending stocks by 1.6 million tonnes. The increase did not come from a higher production estimate, but rather a 1.6 million tonne drop in projected global usage. CBOT March is 13 1/2 cents lower at $5.51 1/2, KCBT March is 12 1/2 cents lower at $5.82 1/2 and MGE March is 10 cents lower at $6.48 1/4.



Cattle futures are trading higher at midday. The market is being supported by strength in the cash market last week and ideas that the boxed beef market is bottoming. Boxed beef prices are at the lowest level since September 2005, but beef prices were mixed on Monday in good volume trade. April is 38 cents higher are $88.13 and June is 50 cents higher at $85.43.



Lean hog futures are sharply higher at midsession. Futures are rebounding from near contract lows amid strength in pork cutouts values yesterday. Packer margins have improved substantially, which could support the cash market later in the week. Technical support has helped extend gains after prices pushed above some technical overhead resistance. April is $1.93 higher at $62.00 and June is $1.60 higher at $74.65.
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