Corn futures are a couple cents lower at mid morning Wednesday amid light profit taking following the strong rally of the past week. The prospect of heavy cash movement in the new year is contributing to the setback. However, commodity funds remain aggressively long and they are expected to add to those positions after the first of the year. March corn is 1 3/4 cents lower at $3.86 1/4 and the December 2007 contract is down 1 1/4 cents at $3.70 1/4.



Soybean futures have turned higher after dipping a few cents lower in early trading. Tuesday's double digit gains are attracting follow through technical buying interest. Flooding in Indonesia is threatening to reduce palm oil production, providing fundamental support. The January soybean contract is 1 3/4 cents higher at $6.73 1/4 and November is up 1 1/2 cents at $7.31 1/2.



Wheat futures are a few cents lower, pressured by forecasts for a winter storm to bring moisture to the hard red winter wheat region late this week and into the weekend. Technical selling is also weighing on the market in the wake of a potential near term top on the charts at Tuesday's highs. CBOT March is 5 1/2 cents lower at $5.11 1/4. Kansas City March is down 4 3/4 cents at $5.15 3/4 and MGE March is down 3 3/4 cents at $5.17 1/2.



Cattle futures are sharply higher Wednesday morning boosted by forecasts for another winter storm in the Plains. February futures blasted through chart resistance at $91.10 to reach the highest level since November 1. The remaining 2007 contracts have surged to new contract highs. At mid morning, February cattle are 117 points higher at $91.27 and April is up 102 points at $92.75.



Lean hog futures are slightly lower at mid morning. Cash prices in the Midwest are 50 cents to a dollar higher on strong demand as packers are planning a heavy Saturday slaughter. Despite the higher cash prices and strength in cattle, concerns that the Hogs and Pigs report may show more expansion than expected have kept buyers on the sidelines. February lean hogs are 5 points lower at $62.30 and June is down 20 points at $72.80.