Corn futures are trading narrowly mixed at midday. USDA's supply/demand report has had little influence as domestic numbers were left unchanged. Early weakness was attributed to a 4 million tonne increase in world production. However, short-covering is helping to limit losses. March is 1/2 of a cent higher at $3.69 and December '07 is 1 cent lower at $3.49 1/4.

Soybean futures are higher at midsession. Gains are being attributed to a short-covering rally following recent losses. The Supply/Demand report was fairly neutral for the market. The U.S. balance sheet was left unchanged, with ending stocks still expected to be record large at 565 million bushels. January is 7 1/4 cents higher at $6.63 1/4 and November is 6 1/4 cents higher at $7.14.

Wheat futures are trading higher at midday. USDA's supply/demand revisions were near expectations. USDA cut wheat exports by 25 million bushels and raised ending stocks 20 million bushels from the November estimate. A weekend sale of SRW wheat to Egypt has helped pull prices higher. CBOT Mar is 2 3/4 cents higher at $4.88 1/2, KCBT Mar is 1/2 cent higher at $5.07, and MGE Mar is 1 1/2 cents higher at $5.00 1/2.

Cattle futures are lower at midday. Despite firm cash business last week at $87-87.50, traders were disappointed at fairly moderate volume. Weakening boxed beef prices and concern that poor margins may cause packers to slow slaughter are weighing on futures. December is 48 cents lower at $86.48 and February is 75 cents lower at $88.98.

Lean hog futures are trading lower at midsession. Steady to lower cash markets are weighing on futures as hog marketings have picked up today given the improved weather compared to last week. December is 38 cents lower at $61.95 and February is 63 cents lower at $63.65.