Corn futures are trading higher at midday. Technically oversold conditions and light short-covering from the heavily short funds are supporting the market. Basis levels are steady to firm. Overnight export business with South Korea was routine. March futures are 1 cent higher at $1.98 3/4.

Soybean futures are trading higher at midsession. Funds are heavily short and short-covering is supportive. But gains are being limited by forecasts for favorable rainfall in South America and concern that China will turn their buying interest to Brazil. March is 3 cents higher at $5.23.

Wheat futures are trading higher at midday. Export business is supportive with recent sales reported to Iraq and the Philippines. Speculators are heavily short, which leaves the market open to short-covering. CBOT Mar is 2 1/2 cents higher at $2.97 3/4, KCBT Mar is 1 1/2 cents higher at $3.32 1/2 and MGE Mar is 1 cent higher at $3.45 3/4.

Cattle futures are slightly higher this morning as the market is correcting from yesterday's losses. Talk of rain and snow in the Plains later this week was supportive. However, gains are being limited by lower beef cutouts values. February is 5 cents higher at $88.75.

Lean hog futures are trading mostly lower at midday. Cash markets are expected to soften this week as pork cutout values decline. The Cold Storage report showed overall pork in storage at the end of December at the second highest on record. February is 3 cents lower at $75.40.