Corn futures closed strongly higher on Wednesday. Spillover support from wheat and ideas of a decrease in grain production in Russia led to the rally today. The market was higher despite generally favorable weather forecasts for the crop over the next couple of weeks. Temperatures are expected to be warm, but most areas should have adequate soil moisture. September is 13 1/2 cents higher at $3.76 1/4 and December is 13 3/4 cents higher at $3.90 3/4.    

Soybean futures traded higher on Wednesday. The market was supported by the rally in wheat and strong export demand. USDA confirmed the sale of 120,000 tonnes of U.S. soybeans to China for 2010/11 this morning. There is some concern about dry conditions in the Delta, but the majority of the Midwest is forecast to see favorable growing conditions over the next couple of weeks. August closed 12 1/2 cents higher at $10.10 1/2 and November was 12 1/2 cents higher at $9.78.

Wheat futures were sharply higher on Wednesday. Wheat futures rallied to new highs for the move on a report that Russia my cut grain exports in half. Drought has hurt wheat production prospects in Russia and also in parts of Europe. Gains at the MGE were limited somewhat by favorable spring wheat condition ratings that indicate well above average yields this year. CBOT Sep closed 20 1/2 cents higher at $6.15 1/2, KCBT Sep ended 15 3/4 cents higher at $6.30 3/4 and MGE Sep was 15 3/4 cents higher at $6.30 3/4.      

Cattle futures closed higher on Wednesday. Short-covering developed during the session to pull futures higher. Weakness in the dollar and strength in corn prices were also supportive factors. But gains were limited by weakness in the stock market and lower choice cutout prices at midday. Cash trade has not developed yet this week. August ended 13 cents higher at $92.78 and October was 28 cents higher at $94.20.

Lean hog futures were higher on Wednesday. Front end contracts led the gains as fund buying and technical buying pushed prices higher. The firm tone in the cash market and higher pork prices were also supportive. Packer margins remain favorable and hog numbers are tight. August closed $1.15 higher at $83.38 and October was 73 cents higher at $76.95.