Corn futures are lower at midsession. Improved weather forecasts for Argentina next week are weighing on soybeans and the corn markets. Export demand remains weak as some corn demand is being displaced by cheaper feed wheat. Losses in the crude oil and gold markets this morning are also bearish factors. March is trading 8 cents lower at $3.85 3/4 and May is 8 cents lower at $3.96 3/4.

Soybean futures are strongly lower at midday. Forecasts calling for improved chances of rain in Argentina next week are weighing heavily on the market. Drought has cut yield potential, but good rains over the next few weeks could help salvage some of the crop. Weakness in crude oil futures is also lending pressure to the commodity markets. March is 27 cents lower at $9.82 and May is 27 3/4 cents lower at $9.89.

Wheat futures are trading lower at midday. Spillover pressure from soybeans and corn are weighing on wheat prices. But losses are being limited by the news yesterday that Argentina is rejecting wheat export permits. Also, dry conditions in the southern Plains are a bullish concern for the HRW wheat crop. CBOT March is 2 cents lower at $5.90 1/2, KCBT March is 5 1/4 cents lower at $6.16 1/2 and MGE March is 5 cents lower at $6.60 1/2.

Cattle futures are trading lower at midsession. Concern about the weakening economy and how that will hurt beef demand and spillover selling from the lean hog pit are weighing on futures. Recent weakness in the cash market and declining beef prices since late last week are also fundamentally bearish factors. February is 55 cents lower at $81.80 and April is 75 cents lower at $84.85.

Lean hog futures are sharply lower at midday, with the February through December contracts hitting new lows. Follow-through technical and fund selling is being triggered by concern about the economy and declining cash markets. Packer margins remain poor and packers are cutting back on slaughter. February is $1.60 lower at $56.40 and April is $1.83 lower at $60.95.