Corn futures are trading higher at midday. Speculative buying is being triggered by ideas that President Bush's state of the union address will promote the use of alternative fuels. However, the market has backed off of early gains. March is 2 cents higher at $4.06 1/4 and December is 4 1/2 cents higher at $4.01.



Soybean futures are higher at midsession. The market is following corn and soybean oil higher ahead of the state of the union address in which the market is expecting alternative fuels such as biodiesel to be promoted. Further gains are being limited by favorable crop weather for the soybean crop in South America. March is 7 cents higher at $7.24 1/4 and November is 6 1/4 cents higher at $7.75.



Wheat futures are higher at midday. Strength in corn is leading the way on ideas that President Bush will promote biofuels in the state of the union address. Gains are being limited by improved soil moisture levels in the hard red winter wheat belt. CBOT Mar is 6 1/2 cents higher at $4.71 1/2, KCBT Mar is 6 3/4 cents higher at $4.93 3/4, and MGE Mar is 4 cents higher at $5.00.



Cattle futures are trading mixed at midsession. The market is choppy, but February is being pressured lightly by lower beef prices and forecasts for milder weather in the Plains that should improve feedlot conditions. The market is also beginning to gear up for the Cattle on Feed report due out on Friday. February is 18 cents lower at $90.08 and April is 3 cents higher at $92.73.



Lean hog futures are higher at midday. The market is being supported by Monday's Cold Storage report that showed total pork stocks of 440 million pounds, which was under trade expectations. However, gains are being limited by the cash market trading mostly steady to lower. February is 58 cents higher at $61.53 and April is 65 cents higher at $65.20.