Corn futures are higher at midday. Speculative buying and technical strength after hitting new contract highs in overnight trade is supporting the market. The U.S. dollar is weaker, which should help encourage corn export demand that is already running 34% ahead of last year. December is 2 1/4 cents higher at $3.71 1/2 and March is 2 3/4 cents higher at $3.88 3/4.



Soybean futures are trading higher at midsession. Strength in global vegetable oil markets is supporting soybean oil and the soy complex. Demand for vegetable oil remains strong in Asian markets and USDA announced this morning the sale of 30,000 tonnes of U.S. soyoil to China for 2006-07 delivery. January is 6 cents higher at $6.90 1/4 and March is 6 1/2 cents higher at $7.03 1/4.

Wheat futures are mixed at midday. Light profit-taking is weighing on the CBOT after a firm open. However, the KCBT is finding support from dry conditions in the Plains and weakness in the U.S. dollar that should make U.S. wheat more competitive on the world market. CBOT Mar is 1 cent lower at $5.18, KCBT Mar is 3 1/4 cents higher at $5.41, and MGE Mar is 1 1/2 cents higher at $5.25.



Cattle futures are trading lower at midsession. Higher corn prices are weighing on futures as traders are trying to evaluate this week's cash market. Liquidation of the December contract is also a negative for the nearby. December is 50 cents lower at $87.15 and February is 23 cents lower at $90.13.



Lean hog futures are lower at midday. Profit-taking and fund selling from recent gains are weighing on the market. Cash hogs are firm today, but there is concern that they could turn lower later this week as packer margins have tightened. December is 12 cents lower at $62.85 and February is 23 cents lower at $66.70.