Corn futures are trading higher at midsession. The market is nearing four month highs. More rain in the eastern half of the Corn Belt that will keep planting progress slow and the smaller than expected ending stocks projections by the USDA on Tuesday are bullish factors. Strength in crude oil is also providing support. July is 1 1/2 cents higher at $4.29 and December is 2 cents higher at $4.50.



Soybean futures are strongly higher at midday. Old-crop contracts have rallied to the highest level in seven months as ending stocks for the current marketing are expected to be very tight at only 130 million bushels. USDA's projection for 2009/10 is only 230 million bushels, leaving little cushion for production problems. Rain in the eastern Corn Belt is bullish as soybean planting will be delayed, although wet conditions may cause a shift of some acreage intended for corn to soybeans. July is 14 1/2 cents higher at $11.32 and November is 11 1/2 cents higher at $9.94.



Wheat futures are trading mixed at midsession. Spillover support from soybeans and corn helped push futures higher most of the session. Spring wheat planting delays and USDA's smaller than expected winter wheat production number are also bullish factors. However, gains are being limited and some contracts are lower at midday on technical selling following recent gains. CBOT July is 3/4 of a cent lower at $5.92 and CBOT July is 1/4 of a cent lower at $6.37 1/4 and MGE July is 1 3/4 cents higher at $7.06 1/2.



Cattle futures are trading lower at midsession. Weakness in the stock market following the disappointing April retail sales report is pressuring prices. Cash trade is expected to be firm this week, but that has already been factored into the market. Losses are being limited by firm beef prices on Tuesday and ideas that demand will be improving ahead of Memorial Day weekend. June is 25 cents lower at $82.95 and August is 33 cents lower at $83.25.



Lean hog futures are lower at midday. The premium of futures to cash and ideas that strength in the cash market will not be sustained are bearish factors. Pork cutouts were up $1.14 on Tuesday, but cash hog prices have moved up faster than pork, which has hurt packer margins. Weakness in the stock market is also a bearish factor. June is 83 cents lower at $68.10 and October is 85 cents lower at $65.85.