Corn futures gapped higher on the open, but gains have moderated at midsession. The Mar contract rallied to a new on-month high as technical buying was trigged above resistance at $2.00. However, buying interest dried up and futures quickly returned to just slightly higher levels. March is trading 1/2 of a cent higher at $1.98 3/4.



Soybean futures are trading higher at midday, but have slipped from the highs early in the session. Continued dry conditions in southern Brazil prompted short-covering by the funds. Weekend weather in southern state of Rio Grande do Sul was dry and forecasts for the next week look dry. March is 2 3/4 cents higher at $5.28 1/2.



Wheat futures are trading mixed at midday. Spillover support from soybeans initially supported the market. However, the lack of fundamental news kept futures mixed in choppy trade. Weekly export inspections of 15.8 million bushels were up slightly from last week. CBOT is 1/4 of a cent higher at $2.94 3/4, KCBT Mar is 1/4 of a cent lower at $3.29 1/4 and MGE Mar is 1 1/2 cents lower at $3.39.



Cattle futures are mixed at midsession. Nearby contracts are slightly higher as showlists remain tight and feedlot conditions are muddy. Deferreds are lower on concern about the Canadian border opening to live cattle imports less than 30 months of age in March. April is 8 cents higher at $86.90.



Lean hog futures are trading mixed in light trade at midday. Futures are technically oversold, but cash fundamentals remain negative. Pork cutouts were down strongly on Friday and marketings are ample despite packers lowered bids. April is 8 cents higher at $72.60.