Corn futures are trading sharply higher at midsession. Follow-through buying from yesterday's rally supported futures early with reports that at least one of the index funds is done rebalancing their portfolios. Technical buying has helped extend gains as futures have pushed above key moving averages. March is 18 1/2 cents higher at $3.78 3/4 and December is 11 cents higher at $3.71.

Soybean futures are trading higher at midday. Spillover from the strong rally in corn is supporting the market. Export demand remains strong as sales are running 33 percent ahead of a year-ago. Traders are also evening positions ahead of the USDA reports due out on Friday morning. March is 11 cents higher at $6.75 3/4 and November is 10 1/4 cents higher at $7.23.

Wheat futures are higher at midsession. The rally in corn has pulled prices higher despite continued sluggish export demand and ideas that USDA will revise the winter wheat acreage number strongly higher on Friday morning. CBOT Mar is 12 1/2 cents higher at $4.62, KCBT Mar is 11 3/4 cents higher at $4.84, and MGE Mar is 10 3/4 cents higher at $4.81.

Cattle futures are trading lower at midday. Profit-taking is weighing on the market after the recent rally in futures. However, fundamentals remain generally positive with rising beef prices and forecasts for wintery weather in the Plains through the weekend. February is 58 cents lower at $93.38 and April is 70 cents lower at $94.08.

Lean hog futures are trading mixed at midday. Cash markets are mostly steady today. Reduced slaughter over the holidays and favorable weather has kept hog supplies plentiful, but there is concern about numbers tightening as we move into February. February is 10 cents higher at $60.65 and April is 25 cents lower at $63.80.