Corn futures are trading sharply higher at midsession, posting new contract highs. Spillover strength from wheat, strong weekly export sales, and continued bullish reaction to USDA's smaller than expected production and ending stocks estimates are supporting futures. December is 10 cents higher at $3.08 1/4 and March is 10 cents higher at $3.18 1/4.

Soybean futures are trading higher at midday. The market is being supported by firm outside markets and spillover from the strong rallies in corn and wheat. Weekly export sales were above trade expectations this week at 39.9 million bushels. November is 11 1/4 cents higher at $5.91 and January is 10 1/4 cents higher at $6.04 3/4.

Wheat futures are strongly higher again this morning. Market strength returned today after profit-taking weighed on prices yesterday. News that Egypt bought 300,000 tonnes of wheat, though only 60,000 tonnes from the U.S., sparked the rally. A new marketing year high in weekly export sales was a supportive factor. CBOT Dec is 12 cents higher at $5.27 1/2, KCBT Dec is 12 1/4 cents higher at $5.45 and MGE Dec is 8 3/4 cents higher at $5.24 1/2.

Cattle futures are trading mixed at midday. Front end contracts are steady to lower on concerns that rising corn prices will encourage earlier marketings. On the other hand, deferreds have found some support on ideas that higher feed prices will reduce placements. October is 45 cents lower at $88.30, December is unchanged at $87.70, and February is 25 cents higher at $90.13.

Lean hog futures are trading higher at midsession. The futures market is being supported by the discount of futures to the lean hog cash index and talk of firming cash prices next week. Packer margins have improved this week and slaughter schedules are expected to remain large. December is 75 cents higher at $61.75 and February is 65 cents higher at $63.95.