Corn futures are slightly lower at midday. Some follow-through selling from the limit losses yesterday and the bearish supply/demand revisions from USDA are pressuring prices. But losses are being limited by strength in soybeans, continued weather stress for Argentina's corn crop and firm crude oil prices. March is 3 cents lower at $3.77 3/4 and May is 3 cents lower at $3.88 1/4.



Soybean futures are trading solidly higher at midsession. The market is being supported by stressful weather in Argentina, with forecasts calling for more hot and dry weather. Continued export demand from China is also a bullish factor. Further gains are being limited by the bearish USDA reports on Monday and strength in the dollar index. March is 22 1/4 cents higher at $9.88 1/4 and May is 23 cents higher at $9.98 1/2.



Wheat futures are higher at midday. The rally in soybeans has helped the wheat market recover from the strong losses yesterday. While USDA raised U.S. and world ending stock estimates, they also estimated winter wheat seedings at only 42.1 million acres, down 4.1 million acres from last year and 2.2 million below trade expectations. Strength in the dollar and recently sluggish export demand is limiting further gains. CBOT March is 15 1/2 cents higher at $5.85 1/2, KCBT March is 18 cents higher at $6.13 and MGE March is 23 1/4 cents higher at $6.51 1/2.



Cattle futures are trading strongly higher at midsession. Short-covering is responsible for the bounce after futures hit one-month lows yesterday. The market has recovered from the previous discount to last week's cash market. Cash trade is expected to be steady to firm this week as beef prices have rallied recently. Choice cutouts were up $2.12 on Monday. February is $1.55 higher at $84.45 and April is $1.35 higher at $87.85.



Lean hog futures are lower at midday. The premium of futures to cash and technical selling are weighing on the market. However, losses are being limited by strength in the cash market and cold Midwest weather that has slowed hog marketings. February is 8 cents lower at $61.40 and April is 40 cents lower at $67.08.