Corn futures are trading higher at midsession. Spillover strength from soybeans and crude oil futures are supporting the corn market. Despite some recent rainfall, the corn crop in Argentina is expected to continue to be stressed by mostly dry conditions over the next week or two. March is 4 cents higher at $3.81 1/2 and May is 4 cents higher at $3.91 1/2.



Soybean futures are higher at midday. Positioning ahead of the Supply/Demand report is supporting prices. Traders are looking for USDA to lower their South American production numbers on Tuesday morning, but this has largely already been factored into prices. News of fresh export demand to China is also supportive. Weekly export inspections last week were very strong at 46.6 million bushels, up from 38.2 million the previous week. March is 5 3/4 cents higher at $10.06 3/4 and May is 6 cents higher at $10.12.



Wheat futures are strongly higher at midsession. Weakness in the dollar index and better than expected weekly export inspections helped push prices higher. Export shipments last week were 19 million bushels compared to pre-report trade estimates of 13-15 million. The southern Plains has received some beneficial precipitation, but amounts will only offer temporary relief from the recent drought. CBOT March is 15 1/4 cents higher at $5.72 1/4, KCBT March is 13 cents higher at $5.99 1/2 and MGE March is 5 3/4 cents higher at $6.60 1/2.



Cattle futures are strongly higher at midsession. Strength in the cash market late last week and weakness in the dollar index this morning are bullish factors. Cash cattle traded at $83 in the southern Plains, up $1 from the previous week. However, further gains are being limited by concern about the economy and weak beef demand. Boxed beef prices were down strongly last week, with Choice cutouts at their lowest levels since September of 2005. April is 93 cents higher at $87.63 and June is 60 cents higher at $84.68.



Lean hog futures are trading mixed at midday. The continued weak tone in the cash market and lower pork cutout values on Friday have limited gains and are weighing on some contracts. However, losses are being limited by technically oversold conditions and spillover strength from the cattle pit. April is 10 cents higher at $60.30 and June is 5 cents higher at $73.00.