Corn futures are trading sharply higher this morning. Futures hit limit gains before pulling back slightly following USDA's Production and Supply/Demand reports. USDA's production number was trimmed to 10.9 billion bushels, down over 200 million from last month and pre-report trade estimates. Ending stocks this crop year are expected to decline to 996 million bushels. December is 16 cents higher at $3.00 and March is 14 cents higher at $3.08.

Soybean futures are trading higher at midday. Spillover strength from corn and slightly supportive USDA numbers this morning are supporting prices. USDA raised the crop production number to 3.189 billion bushels, up 96 million from last month but 17 million below trade estimates. Ending stocks of 555 million bushels were 25 million below trade expectations. November is 11 1/2 cents higher at $5.73 3/4 and January is 10 3/4 cents higher at $5.87 3/4.

Wheat futures are lower at midsession after opening higher. The market has turned weaker on some profit-taking from recent sharp gains. The USDA supply/demand report was supportive as ending stocks this year of 418 million bushels are down 11 million from last month. A big cut in Australia's crop helped boost USDA's export number for the U.S. CBOT Dec is 10 cents lower at $5.21, KCBT Dec is down 13 1/2 cents at $5.27, and MGE Dec is 13 1/4 cents lower at $5.16.

Cattle futures are trading mostly higher at midday. Technically oversold conditions and spillover support from hogs have helped rally the market. However, gains are being limited by concerns that packers will reduce slaughter schedules due to poor margins. October is 5 cents lower at $88.30 and December is 58 cents higher at $87.48.

Lean hog futures are strongly higher this morning. Short-covering and spread activity are supporting the deferred contracts in light volume trade. The December contract's discount to October and the lean hog index are supportive factors. October is up only 25 cents at $64.90, but December is 158 points higher at $61.40.