Corn futures are trading strongly higher at midsession. Spillover strength from soybeans, the rally in the stock market and crude oil, and weakness in the dollar are all supportive factors. There is some concern about forecasts for a warm and dry weather pattern to develop over the Corn Belt. However, there are chances of rain ahead of this high pressure ridge and the warmer temperatures will be beneficial to the crop initially as it will speed up maturity. September is 12 cents higher at $3.51 1/2 and December is 12 cents higher at $3.61 1/2.



Soybean futures are sharply higher at midday. Several factors have combined to push prices to the highest level in a month. Tight old-crop stocks, strength in the stock market and crude oil futures and weakness in the dollar are all bullish factors. USDA announced the sale of 116,000 tonnes of soybeans to an "unknown destination" for 2009/10 delivery. There is some concern about forecasts for a warm and dry weather pattern to develop over the Midwest later this week. This could hurt yield prospects while the crop is setting pods, although currently the warmer weather would help crop maturity. September is 33 3/4 cents higher at $10.77 3/4 and November is 35 3/4 cents higher at $10.17 3/4.



Wheat futures are up strongly at midsession. Spillover support from corn and soybeans along with weakness in the dollar are pushing wheat prices higher. The declining dollar should help export prospects. Weekly export inspections reported this morning of 13.5 million bushels were within trade estimates ranging from 13 million to 16 million bushels. CBOT Sep is 16 cents higher at $5.44 1/4, KCBT Sep is 15 1/2 cents higher at $5.74 3/4 and MGE Sep is 15 cents higher at $6.20.



Cattle futures are mostly higher at midday, although weakness in the cash market last week has kept the August contract on the defensive. Light trade developed at $82 in the Plains on Friday, down $1 from the previous week. But deferreds have rallied with the help of declining cattle supplies while demand prospects improve with the rally in the stock market. August is 20 cents lower at $84.50 while October is 25 cents higher at $90.45.



Lean hog futures are down strongly at midsession. After making a strong short-covering rally late last week, the market has turned lower again. Several packing plants have suspended slaughter today, which will weigh on the cash market as marketings back up. But strength in the corn market, the rally in stock market and weakness in the dollar are helping to limit losses in deeper deferred contracts. August is $1.05 lower at $54.98 and October is $1.90 lower at $52.00.