Corn futures are trading mostly lower at midday. With much of the crop pollinating in favorable conditions, ideas of strong yields are weighing on new-crop futures. Crop condition ratings are above normal at 70% good to excellent. Losses are being limited and the nearby is slightly higher on spillover strength from soybeans. September is 2 1/2 cents higher at $3.24 3/4 and December is 1/4 of cent lower at $3.33 1/2.



Soybean futures are higher at midsession. Tight old-crop stocks and talk that China bought one to two cargoes of U.S. soybeans are supporting the market. Forecasts for mild temperatures and chances of rain as we move into the critical August time frame are limiting new-crop gains relative to old-crop. However, soybean development is late and could become a problem if there is an early frost. August is 32 1/4 cents higher at $10.53 1/2 and November is 17 cents higher at $9.23 1/2.



Wheat futures are mostly higher at midday. The market has been choppy, but futures have turned higher on spillover support from soybeans. But gains are being limited by sluggish export demand and ample global wheat supplies. Spring wheat condition ratings remain strong at 74% good to excellent, up 1% from the previous week and 14% above year-ago. CBOT Sep is 1/2 of a cent higher at $5.21, KCBT Sep is 2 1/4 cents higher at $5.54 and MGE Sep is 2 1/2 cents higher at $6.00.



Cattle futures are trading higher at midsession. The market is being supported by technical buying and the outlook for tighter cattle supplies. Strength in boxed beef prices on Monday and reports of smaller showlists this week are leading to optimism of steady to firm cash trade this week compared to the mostly $83 trade last week. August is 30 cents higher at $85.00 and October is 45 cents higher at $90.65.



Lean hog futures are sharply lower at midday. The August through July 2010 contracts have fallen to new contract lows and some months briefly were down the $3 limit. Reports that several packing plants will reduce slaughter and the 85 cent drop in pork cutouts on Monday are pressuring prices. Fund selling and sell-stops have helped extend losses. August is $2.08 lower at $57.10 and October is $2.05 lower at $52.70.