Corn futures traded higher on Tuesday. The market was supported by Mexico’s 3.9 million bushel purchase of U.S. corn, one of the largest daily sales ever reported by USDA. The sale is for corn to be delivered in 2011/12 and 2012/13. Futures were also supported by weakness in the dollar and concerns about planting delays. With tight ending stocks already projected, crop prospects become even more important. July closed 4 1/2 cents higher at $7.36 1/2 and December was 9 1/2 cents higher at $6.76 1/2.
Soybean futures closed solidly higher on Tuesday. Futures were able to recover from the strong losses on Monday amid concern about planting delays and weakness in the dollar. Planting progress nationally was 68% complete as of Sunday, below trade expectations and down from the five year average of 82%. Soybean emergence was at 44% compared to the average pace of 61%. Traders will be gearing up for the Supply/Demand report on Thursday morning. Ending stocks projections are expected to remain tight, leaving little room for a shortfall in soybean production. July ended 10 3/4 cents higher at $13.94 and November was 12 1/2 cents higher at $13.85 1/4.
Wheat futures were lower on Tuesday. Improved weather for the European wheat crop and profit-taking at the MGE weighed on futures trade. Although yields are poor as expected, winter wheat harvest in the southern Plains is beginning to hit the market. Harvest as of Sunday was 10% complete compared to the five-year average of 7%. Profit-taking weighed heavily on the MGE July contract despite continued spring wheat planting delays. The crop was 79% seeded as of Sunday versus the five-year average of 98%. CBOT July closed 10 1/4 cents lower at $7.33 3/4, KCBT July was 15 1/2 cents lower at $8.74 1/2 and MGE July was 58 1/4 cents lower at $9.83 3/4.
Cattle futures closed solidly higher on Tuesday. The futures market was able to rebound from the losses on Monday due to ideas of firm cash trade this week, strength in the stock market and weakness in the dollar. Light cash trade was reported on Monday at $104, but many feedlots started passing on those bids prompting ideas of higher bids later this week. Packer margins remain very strong despite some weakness in boxed beef prices so far this week. June closed $1.08 higher at $103.48 and August was $1.13 higher at $104.45.
Lean hog futures were mostly higher on Tuesday. The June contract was pressured slightly by the $2.13 drop in pork cutouts and weakness in the cash market today. However, short-covering from recent losses are helping to support deferred futures. Strength in the stock market and weakness in the dollar index were supportive factors for demand. A weaker dollar should benefit pork exports. June closed 8 cents lower at $89.63 while July was $1.75 higher at $89.50.