Corn futures are trading higher at midday. After a mixed open, the market has rallied to new contract highs. Technical strength and the projections for strong demand are supporting the market. March is 5 1/2 cents higher at $4.20 3/4 and December is 5 1/4 cents higher at $4.18 1/2.

Soybean futures are trading higher at midsession. Profit-taking initially weighed on prices after climbing to 2 1/2 year highs on Tuesday. However, spillover strength from corn and bullish momentum has helped prices turn higher again. March is 2 1/2 cents higher at $7.73 1/2 and November is 1 1/2 cents higher at $8.24.

Wheat futures are higher at midday. Short-covering from the lower close on Tuesday and strength in the corn market is providing support. Mostly good crop prospects for the U.S. and world wheat crops initially limited gains. CBOT Mar is 8 cents higher at $4.72 1/2, KCBT Mar is 6 cents higher at $4.99, and MGE Mar is 6 3/4 cents higher at $5.09.

Cattle futures are higher at midsession. Short-covering from the sharp losses on Tuesday are supporting the market. Deferreds are finding support on ideas that the Cattle on Feed report due out Friday afternoon will show the first year-over-year decline in on-feed supplies in 16 months. April is 55 cents higher at $95.90 and June is 50 cents higher at $93.08.

Lean hog futures are mostly lower at midday. Light short-covering from the losses on Tuesday initially helped some contracts trade higher this morning. However, futures have turned mostly lower on weakness in the cash market and recent declines in pork cutout values. April is unchanged at $66.85 and June is 20 cents lower at $76.75.