Corn futures are trading slightly higher at midday. Prices have bounced a bit off of Monday's losses. Adding to support is the disappointing crop condition report, which showed the crop slightly worse than the previous week, which was a bit unexpected given the favorable weather. Gains are being limited by weakness in the stock market and the stronger dollar. September is 3 cents higher at $3.37 3/4 and December is 1 1/2 cents higher at $3.45 3/4.

Soybean futures are trading sharply lower at midsession. The market is again shrugging off supportive fundamental news in its declining crop condition report and better-than-expected export inspections from Monday. The market seems to be focusing on the favorable weather and bearish outside markets. August futures are 36 cents lower at $10.82 1/2 and November is 25 cents lower at $9.38.

Wheat futures are trading higher at midday. Monday's losses have led to short-covering, as the market had become oversold. Also supportive is the lagging winter wheat harvest, particularly in the eastern Midwest. Forecasts for a possible drought in Russia grain regions this year are friendly for prices. CBOT September is 1 1/2 cents higher at $5.20 3/4, KCBT September is 3/4 of a cent higher at $5.51 3/4 and MGE September is 3 1/2 cents higher at $6.16.

Cattle futures are mixed at midsession, with the nearby months being pressured. The market is being weighed down by the weaker economy, which is suffering from the highest unemployment in 26 years. Fears are that this could lead to decreased beef demand. There are concerns of the demand chain slowing, hurting feedlots and carcass weight values. Deferreds are supported by expectations for tightening supplies. August is 63 cents lower at $83.80 and October is 48 cents lower at $89.35.

Lean hog futures are mixed at midday. Prices are being pressured by profit-taking following Monday's strong gains. However, nearby prices have pushed higher on support from steady to $1 higher cash trade in the Midwest this morning. Pork plant margins are negative, and slaughter is down from last year. August is 20 cents higher at $62.25 and October is 33 cents higher at $58.28.