Corn futures are trading sharply lower at midday. USDA's production and ending stock numbers were above trade expectation. Production was pegged at 10.976 billion bushels and 2006-07 carryout at 1.232 billion bushels. In addition, since the August 1 survey, rain and moderate temperatures have benefited earfill in much of the Corn Belt. September is 10 1/4 cents lower at $2.28 1/2 and December is 10 3/4 cents lower at $2.45.

Soybean futures opened higher briefly, but quickly turned lower. USDA's production and ending stocks numbers were supportive, but spillover weakness from corn and ideas that recent favorable weather will benefit yields encouraged traders to discount the report. Production was pegged at 2.928 billion bushels and 2006-07 ending stocks were trimmed to 450 million bushels from 560 million in July. September is 4 3/4 cents lower at $5.56 1/2 and November is 4 1/4 cents lower at $5.70.

Wheat futures are strongly lower at midsession. USDA's wheat production number was bearish as spring wheat production at 464 million bushels was down only 1 million from July while traders were looking for a 35 million bushel decrease. The wheat ending stocks estimate for 2006-07 at 434 million bushels was 24 million above trade expectations. Technical weakness and spillover from corn has helped extend losses. CBOT Sep is 10 1/2 cents lower at $3.76, KCBT Sep is 13 1/4 cents lower at $4.56, and MGE Sep is 15 cents lower at $4.57 1/4.

Cattle futures are trading mixed at midday. The recent strength in cash trade and firm boxed beef prices are supporting the front-end contracts. However, profit-taking is limiting gains and is weighing deferreds following the recent rally. August is 8 cents higher at $88.55 and October is 28 cents higher at $92.65.

Lean hog futures are mixed at midsession. Follow-through strength is supporting the front-end months thanks to the better than expected cash market this week. However, deferreds are lower on some profit-taking and ideas that the cash market peak soon. August is 53 cents higher at $72.05 and October is 25 cents higher at $64.65.