Corn futures are higher at midday. Surging soybean prices are supporting the corn market. Soybean and corn production in Argentina and southern Brazil are being threatened by hot and dry weather. Further gains are being limited by the weakness in crude oil trade this morning and ideas that USDA reports next Monday will be bearish for the market. March is 9 1/4 cents higher at $4.16 and May is 9 1/2 cents higher at $4.26 1/2.



Soybean futures are sharply higher at midsession. Fund buying has rallied futures amid updated weather forecasts that have turned drier for much of Argentina and southern Brazil. In addition, export demand remains strong as China continues to be a big customer. USDA reports on Monday are expected to be supportive with ending stock expected to decline. March is 44 cents higher at $10.33 1/2 and May is 43 1/4 cents higher at $10.43 1/4.



Wheat futures are trading higher at midday. The market has been pushed higher by the surging soybean market. USDA will release a winter wheat acreage number on Monday and the market is looking for it to be down about 2 million acres from last year. Gains are being limited by strength in the dollar index and the recent sluggish pace of export demand. CBOT March is 11 cents higher at $6.23 1/2, KCBT March is 13 3/4 cents higher at $6.47 and MGE March is 13 cents higher at $6.77 1/2.



Cattle futures are trading higher at midsession. Short-covering is supporting the market following the sharp losses on Thursday. Weakness in the cash market this week has already been priced into futures. Beef prices have been trending lower, but boxed beef prices were firm in good volume trade yesterday. February is 60 cents higher at $83.75 and April is 45 cents higher at $87.40.



Lean hog futures are mixed at midday. Front end contracts are firm on support from rising cash prices, the $2.29 jump in pork cutout values yesterday and forecasts that call for very cold temperatures next week. Deferreds are lower on concern that the poor economy will hurt pork demand. February is 43 cents higher at $62.85 while June is 15 cents lower at $81.40.