Corn futures are trading higher at midday. Strength in crude oil and weakness in the dollar has helped triggered a short-covering bounce in the corn market. News that China will buy 10 million tonnes of corn for state reserves to help domestic prices is also a supportive factor. March is trading 5 3/4 cents higher at $3.55 and May is 5 1/2 cents higher at $5.63 1/2.

Soybean futures are moderately higher at midsession. The market is making a recovery rally after falling to near two-month lows on Wednesday. Strength in crude oil and weakness in the dollar are supportive factors. Further gains are being limited by forecasts for rain in Argentina on Friday and Saturday. March is 8 cents higher at $8.95 1/2 and May is 8 1/2 higher at $8.95.

Wheat futures are higher at midday. The market is rebounding from more than two-month lows hit early this week. Weakness in the dollar and forecasts for warm and dry weather in the southern Plains are supportive factors. The winter wheat crop in the southern Plains will soon require more moisture as it breaks dormancy. CBOT March is 9 1/2 cents higher at $5.20 1/4, KCBT March is 8 3/4 cents higher at $5.55 1/4 and MGE March is 5 cents higher at $6.25.

Cattle futures are trading higher at midsession. Short-covering is supporting the market as futures had fallen to technically oversold levels. Early strength in the stock market was supportive, although it has turned slightly lower. Gains are being limited by the lower cash trade that has developed this week and the decline in boxed beef prices on Wednesday. April is 78 cents higher at $83.70 and June is 78 cents higher at $81.85.

Lean hog futures are lower at midday. The market is being pressured by weakness in the cash market and technical selling. Pork cutouts were $1.32 lower on Wednesday. Packer margins are in the red and unless pork prices can rebound, the cash market is expected to drift lower. Pork demand remains a concern as the economy continues to be in recession. April is 50 cents lower at $60.30 and June is 98 cents lower at $72.90.