Corn futures are lower at midsession. Weakness in outside markets and spillover pressure from the strong losses in soybeans are weighing on corn prices. The dollar is stronger this morning while crude oil, gold and the stock market are all lower. Crop conditions in Argentina have improved and more rain is forecast although serious damage has already been done to the corn crop. March is 14 cents lower at $3.65 and May is 14 1/4 cents lower at $3.76.



Soybean futures are strongly lower at midday. Light rainfall was noted in Argentina this past weekend and forecasts call for more chances of rain this week and next weekend. So the improved soybean crop prospects coupled with the weakness in outside financial and commodity markets are weighing heavily on the soybean market. March is 30 cents lower at $9.50 and May is 29 cents lower at $9.57 3/4.



Wheat futures are trading lower at midsession. Strength in the dollar index, lower crude oil prices and spillover pressure from soybeans and corn are pressuring the wheat market. Export demand remains sluggish as weekly export inspections were only 12 million bushels. However, losses are being limited by drought in some key wheat growing regions of China as well as in the U.S. southern Plains. CBOT March is 11 cents lower at $5.57, KCBT March is 14 cents lower at $5.87 and MGE March is 9 1/4 cents lower at $6.42 3/4.



Cattle futures are trading strongly higher at midsession. The bullish Cattle Inventory report Friday afternoon is offering support despite weak cash fundamentals. Cash trade dipped to mostly $80 live last week and boxed beef prices continued to decline. But the Inventory report showed a smaller than expected cattle herd, the smallest in 50 years. April is $1.43 higher at $86.53 and June is $1.40 higher at $83.85.



Lean hog futures are lower at midday. Weakness in the stock market and strength in the dollar are weighing on the futures market. Firm cash markets are limiting losses in the February contract. Further losses in deferred contracts are being limited by strength in the cattle pit. February is 10 cents lower at $58.45, April is 73 cents lower at $62.25 and June is $1 lower at $74.50.