Corn futures are trading higher at midsession. The market is being supported by short-covering ahead of the USDA reports due out on Wednesday morning. Crop condition ratings due out this afternoon are expected to fall 1 or 2 points in the good to excellent categories. But gains are being limited by recent rainfall in the Corn Belt and forecasts calling for more seasonal temperatures this week. September is 8 3/4 cents higher at $3.30 3/4 and December is 7 cents higher at $3.33 1/2.



Soybean futures are lower at midday. Rainfall in the Midwest and forecasts for more seasonal temperatures this week are weighing on futures as yield prospects should improve. Traders were also taking profits on the gains posted on Friday. Strength in the dollar is also a bearish factor. September is 6 3/4 cents lower at $10.83 3/4 and November is 10 1/4 cents lower at $10.28 1/4.



Wheat futures are higher at midsession. The market is being supported by short-covering and position evening ahead of the USDA reports due out on Wednesday following the decline to new contract lows at the CBOT and KCBT last week. The lack of any other fresh fundamental news will leave the market to pre-report positioning today and tomorrow. CBOT Sep is 8 1/2 cents higher at $4.98, KCBT Sep is 4 1/4 cents higher at $5.29 1/2 and MGE Sep is 6 cents higher at $5.79 1/4.



Cattle futures are trading lower at midsession. The premium of futures to cash has led to concern about deliveries with this first notice day. Deferreds have been pulled lower. Boxed beef prices moved mostly lower last week and cash trade fell another $1 on a live basis. However, losses are being limited by strength in lean hog futures and the outlook for tightening cattle supplies. August is 45 cents lower at $83.40 and October is 30 cents lower at $88.83.



Lean hog futures are higher at midday. Futures are making a short-covering bounce from technically oversold conditions and contract lows posted last week. But fundamentals remain mostly bearish as pork cutout prices are moving lower as is the cash market. Hog marketings remain more than adequate to fill packer slaughter needs. August is 35 cents higher at $49.15 and October is 80 cents higher at $45.70.