Corn futures traded strongly higher on Tuesday. The market was supported by outside markets and hot and dry weather in Argentina that is trimming corn production prospects. Sharp gains in the stock market and crude oil futures while the dollar index traded lower helped extend gains. March closed 12 cents higher at $6.58 1/2 and May ended 12 1/4 cents higher at $6.67.
Soybean futures were sharply higher on Tuesday. South American weather concerns and outside markets supported futures trade. Weather in Argentina is forecast to remain hot and dry, which will hurt soybean crop prospects. In addition, crude oil futures and the stock market were strongly higher while the dollar index was lower. January closed 19 3/4 cents higher at $12.18 1/4 and March was 19 3/4 cents higher at $12.27 1/2.
Wheat futures traded mixed on Tuesday. Weakness in the dollar index and spillover support from corn helped rally wheat futures today, but gains at the CBOT were limited and the KCBT and MGE turned lower on profit-taking after prices had moved toward technically overbought levels. Gains were also limited by sluggish export demand. USDA reported weekly export inspections this morning at 13.4 million bushels, which is below the pace needed to reach USDA’s export forecast. CBOT March ended 4 1/4 cents higher at $6.57, KCBT March was 4 1/2 cents lower at $7.12 1/2 and MGE March was 5 1/4 cents lower at $8.44 1/4.
Cattle futures traded mostly higher on Tuesday. The market traded higher much of the day, but gains were trimmed and the April contract slipped lower into the close. Strength in the stock market and weakness in the dollar index were supportive factors. Gains were limited by uncertainty in the cash market. Showlists are expected to be larger this week following the holiday shortened slaughter schedules, but packers are believed to be short-bought. February closed 10 cents higher at $121.55 while April was 18 cents lower at $125.28.
Lean hog futures were higher on Tuesday. Short-covering and outside market support pushed prices higher. Front end futures led the rally on ideas that cash prices will rebound seasonally. Normal slaughter schedules and the need for retailers to restock meat cases should help support the cash market this week. February closed $1.23 higher at $85.53 and April was 75 cents higher at $88.45.