Corn futures are trading higher at midday. The lack of fund liquidation is providing some support. Even so, in thin holiday trade the market is particularly vulnerable to long liquidation if the funds turn sellers. They are estimated to be holding a net long position of nearly 290,000 contracts. March is 3 cents higher at $3.68 3/4 and December '07 is 1 1/4 cents higher at $3.63.



Soybean futures are modestly higher at midsession as futures challenge resistance at the chart gaps left above the market from Monday. For the January futures we note resistance in the low $6.50s. Exporters reported a 100,000 mt U.S. soybean sale to China. Rain is in the forecast each day this week for the dry areas of southern Brazil. January is 2 1/2 cents higher at $6.50 1/2 and November is 1 3/4 cents higher at $7.08 1/2.



Wheat futures are mixed at midsession. Rain and snow across the dry areas of the Plains over the next day or so will help boost soil moisture. New-crop futures are approaching chart support levels along up trending support lines. CBOT Mar is 1 cent lower at $4.89 1/4, KCBT Mar is 2 cents lower at $5.06, and MGE Mar is 2 1/2 cents lower at $4.99 1/2.



Cattle futures are mixed at midday. A winter storm is moving across the Plains. Prices rallied sharply the past two trading sessions in anticipation of the storm so its impact has largely been factored into prices. The trade is looking for Friday's cattle on feed report to show a sharp 9% cut in placements with cattle on feed up only 2%. Boxed beef prices were mixed on Monday with choice down 18 points while select gains $1.23. December futures is 18 cents higher at $87.00 and February is 5 cents lower at $90.42.



Lean hog futures are higher at midsession. Strong pork prices Monday along with short covering helped boost the lean hog futures so far on Tuesday. Cash hog trends are steady to $.50 lower. Improving packer margins could begin to support cash bids as the week progresses. February is 1.18 cents higher at $63.05 and June is 63 cents higher at $73.25.