Corn, soybeans close higher on Tuesday

Corn futures closed higher on Tuesday. Spillover support from the soybean market supported corn futures most of today’s trading session. End of the day support from technical buying also helped to keep prices above unchanged. USDA’s weekly crop progress report is scheduled to be released tomorrow with expectations that corn harvest will be 93 percent complete. December corn futures settled 5 ¼ cents higher.

Soybean futures closed higher on Tuesday. Soybean futures rallied today on bargain buying and the lower dollar index. Strong cash basis also contributed to the markets price rally. However, gains were trimmed after midsession and traders moved positions out of the November contract to deferred contracts. USDA is scheduled to release its crop progress report tomorrow and the trade is expected soybean harvest 88 percent complete. November soybean futures settled 5 ¾ cents higher.

Wheat futures closed lower on Tuesday. Wheat futures traded both sided of unchanged today. Prices were initially supported by firm gains in the soy complex; however, soft demand for U.S. wheat pulled futures lower. Also, lack of fresh news surrounding the wheat market has discouraged buying interest and limited any upside momentum. December wheat at CBOT settled ¼ cents lower; KCBT settled 1 cent lower; and MGE settled 3 ½ cents lower.

Live cattle futures closed higher on Tuesday. Cattle futures garnered strength as wholesale beef prices rebounded at midday. Choice cutouts were reported at $1.47 higher while select cutouts were reported $1.40 higher at midday. Cash trade remains quiet but expectations for prices this week are called steady at best. December cattle futures closed 93 cents higher.

Lean hog futures closed higher on Tuesday. Lean hog futures posted modest gains despite demand concerns as a result of Hurricane Sandy. In the immediate short term, demand for pork and other meat products may decline as a result of storm; however demand is expected to pick up as consumers, grocers, etc will need to replenish food items lost due to lack of power. Hog futures also firmed on higher wholesale pork prices and expectations for higher cash prices after processors raised bids. December hog futures closed 30 cents higher.

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