Corn futures are trading higher at midday. Strong demand projections are supporting futures as feed and ethanol usage remains strong. Despite ideas of a large crop and the majority of harvest to work through, market sentiment is bullish. Near-term gains are expected to be limited by improved harvest weather this week. December is 3 cents higher at $2.57 3/4 and March is up 3 cents at $2.71 1/4.

Soybean futures are higher at midsession. The market is finding light support from short-covering. However, gains are being limited by bearish fundamentals. Harvest progress is expected to ramp up this week and early yield reports have been good. Rising production estimates and large carryover stocks remain underlying bearish factors. November is 2 3/4 cents higher at $5.47 3/4 and January is 2 1/4 cents higher at $5.61.

Wheat futures are trading higher at midsession. Short-covering is supporting prices following yesterday's decline as corn and soybeans are also higher. Additional support is coming from reports that Iraq is planning to buy 300,000 tonnes of wheat this month with 90 percent coming from the U.S. CBOT Dec is 5 3/4 cents higher at $4.19 1/2, KCBT Dec is 5 3/4 cents higher at $4.19 1/2, and MGE Dec is 3 1/2 cents higher at $4.57 1/2.

Cattle futures are slightly lower at midday. Deferreds are being pressured by last week's bearish placement and on feed numbers in the Cattle on Feed report. Firm cash trade last week and higher beef prices on Monday are helping limit losses in the front end. October is 3 cents lower at $90.70 and December is 8 cents lower at $89.93.

Lean hog futures are mostly higher at midsession. Short-covering is supporting the market despite lower cash hog prices. Packers have been able to maintain aggressive slaughter despite lower bids as hog supplies are plentiful. The large amounts of pork flooding the market are expected to keep pork cutout prices on the defensive. October is 13 cents higher at $62.25 and December is 23 cents higher at $59.90.