Corn futures are trading lower at midsession. The market is on the defensive due to fund selling on ideas that two big index funds would begin rebalancing portfolios this week. Favorable crop weather in South America and expectations for a sharp jump in acreage this spring are also bearish factors. March is 6 1/2 cents lower at $3.61 3/4 and December is 4 1/4 cents lower at $3.61.

Soybean futures are lower at midday. Spillover weakness from corn and generally bearish fundamentals are weighing on the market. Soybean stocks remain large and crop prospects for the crop in South America currently look favorable. March is 5 3/4 cents lower at $6.75 3/4 and November is 5 cents lower at $4.71.

Wheat futures are trading lower at midday. Continued sluggish export demand and improved moisture levels in the hard red winter wheat belt are weighing on the market. The rebalancing of index funds is expected to cause some weakness this week and has encouraged some fund selling today. CBOT Mar is 10 cents lower at $4.60 1/4, KCBT Mar is 3 1/4 cents lower at $4.78, and MGE Mar is 6 cents lower at $4.81.

Cattle futures are higher at midsession. New contract highs were set in the February and April contracts as firm cash trade last week and forecasts for another storm in the Plains later this week are supporting the market. Feedlots are still dealing with the negative affects of the last winter storm. In addition, boxed beef prices are firming. February is 78 cents higher at $93.35 and April is 65 cents higher at $94.78.

Lean hog futures are trading mostly higher at midday. The market is being supported by steady to firm cash markets this morning. Hog numbers look like they are beginning to tighten seasonally as packers return to full week slaughter schedules following the holidays. February is 13 cents higher at $60.53 and April is 15 cents higher at $64.40.