Corn futures closed higher on Tuesday. The market was lower much of the day on outside market pressure. Strength in the dollar and weakness in the stock market and crude oil were bearish for corn. Outside markets were pressured by renewed concern over the European debt situation and how it could drag down the global economy. But late session short-covering and bargain hunting helped push prices higher into the close. December closed 7 1/4 cents higher at $6.54 1/4 and March was 6 1/4 cents higher at $6.65 1/4.
Soybean futures traded strongly lower on Tuesday. The sharp rally in the dollar and weakness in equities and crude oil weighed on the market. Outside markets were pressured by renewed concerns about the European Union debt crisis and its potential affect on the global economy. Losses were still double digit, but early session declines were trimmed by some short-covering and ability of corn to turn higher. November ended 15 1/4 cents lower at $11.92 1/4 and January was 14 3/4 cents lower at $12.02 1/2.
Wheat futures closed mixed on Tuesday. The sharp rally in the dollar index weighed on wheat trade most of the day. But bargain buying in thin volume and spillover support from corn helped pull prices higher at the CBOT. European debt concerns remain a bearish factor for commodity markets. The KCBT traded lower on outside markets and forecast for some rain and snow in parts of the HRW wheat belt. Estimates show 10% of the HRW crop remain under stress from dry weather. CBOT December closed 1 3/4 cents higher at $6.30, KCBT December was 6 1/2 cents lower at $7.18 1/2 and MGE December ended 3 cents lower at $9.05 3/4.
Cattle futures were sharply higher on Tuesday, with the December contract closing up the $3 limit. Fed cattle trade developed at $119-$120 early in the day, steady to $1 lower than last week. But then trade in Nebraska was reported at $124, up $2-$3 from the last week. The strength in the cash market and buy-stops pushed prices strong higher despite outside market pressure. December closed up the $3 limit at $121.60 and February was $2.83 higher at $124.20.
Lean hog futures closed mixed on Tuesday. Outside market pressure and the weak tone in the cash market weighed on futures much of the day before spillover support from cattle helped rally some contracts. The strength in the dollar and weakness in the stock market were bearish for commodity markets. Cash markets were lower as hog supplies are ample and as pork cutouts have turned lower recently. December ended 8 cents higher at $87.55 and February was 28 cents lower at $90.08.