Corn futures are a few cents higher at mid morning Tuesday finding strong technical buying interest and spillover support from the surging soybean market. March corn has climbed to the highest level since December 1 and the new crop December futures contract has reached a new contract high. March corn is 3 1/2 cents higher at $3.87 1/2 and the December 2007 contract is up 1 cent at $3.72.



Soybean futures are sharply higher Tuesday morning led by the surging soyoil market. Flooding in Indonesia have sent palm oil price soaring in Asia. Soyoil futures have surged as much as 100 points higher this morning in response to the developments in the palm oil market. Weather remains mostly favorable in South America. The January soybean contract is 12 cents higher at $6.71 1/2 and November is up 12 cents at $7.29 1/2.



Wheat futures are also solidly higher, finding strong technical support and spillover from strength in corn and soybeans. Wheat markets have rebounded strongly since early last week despite recent favorable moisture in the Plains. Another storm system is in the forecast for the southern Plains late this week. CBOT March is 4 1/2 cents higher at $5.18 1/2, KCBT Mar is also up 4 1/2 cents at $5.22 1/2 and MGE March is up 3 cents at $5.21.



Cattle futures are mixed at midday. Futures found early support from forecasts for a winter storm in the southern Plains late this week but turned mixed after hog futures sold off rather sharply. The Cattle on Feed report Friday was also mildly positive showing a 6% increase in November marketings. However, the weak wholesale beef market is a negative market factor. February cattle are 7 points higher at $89.92 and April is down 2 points at $91.45.



Lean hog futures are lower at mid morning after a slightly higher opening. Cash prices in the Midwest are generally 50 cents to a dollar higher. Packers demand is strong despite the holiday shortened week with a heavy Saturday slaughter planned. Despite the higher cash prices, futures have turned decisively lower amid concerns that the Hogs and Pigs report due out Wednesday afternoon may show more expansion than expected. February lean hogs are 125 points lower at $61.85 and June is down 105 points at $72.50.