Corn futures closed sharply higher on Tuesday. A decline in crop condition ratings, short-covering from oversold levels, weakness in the dollar and strength in crude oil are all supporting the fund buying rally. USDA pegged the crop at 68% good to excellent, down 2 points from the previous week. Positioning ahead of the June 30 Acreage and Stocks reports was also noted. July ended 22 1/4 cents higher at $6.83 and December was 26 1/4 cents higher at $6.53.
Soybean futures traded higher on Tuesday. The market was supported by USDA's lowered crop condition ratings, spillover support from corn and weakness in the dollar index. USDA rated the crop 65% good to excellent, down from 68% the previous week. Traders were also evening positions ahead of the Acreage and Stocks reports due out on Thursday morning. July closed 1 cent higher at $13.30 3/4 and November was 4 cents higher at $13.19.
Wheat futures traded sharply higher on Tuesday. Futures rebounded from recent losses on short-covering, weakness in the dollar and spillover support from corn. Uncertainty about spring wheat production remains an underlying supportive factor. Fund buying helped rally futures ahead of the close despite the uncertainty about the global economy that has recently pressured prices. CBOT July closed 17 1/2 cents higher at $6.40 1/4, KCBT July was 15 1/4 cents higher at $7.43 3/4 and MGE July was 33 1/4 cents higher at $8.39.
Cattle futures closed higher on Tuesday. Firm boxed beef prices at midday and talk of strong beef exports helped trigger the short-covering rally that helped futures rebound from losses on Monday. Beef exports last week were the second largest weekly total this year and exports are up running 34% above year-ago. August was 38 cents higher at $111.75 and October was 78 cents higher at $118.55.
Lean hog futures trades steady to higher on Tuesday. After falling to the lowest level in two weeks on Monday, most contracts were able to rebound slightly today. Short-covering and the $1.68 jump in pork cutout values to a new record high level were supportive factors. Optimism for pork exports to China was an underlying bullish factor for hog futures. August closed unchanged at $92.35 and October was 23 cents higher at $86.80.