Corn futures closed solidly higher on Tuesday. The market was supported by short-covering from the strong losses last week, outside market support and increased concern about flooding in the Missouri River Valley following recent rainfall. The dollar index was lower today on optimism that the debt issue in Greece would be resolved with aid from the EU. Weather forecasts were also bullish as weather forecasts are calling for a period of hot and dry weather developing over the Corn Belt. July ended 7 cents higher at $7.07 1/2 and December was 19 3/4 cents higher at $6.80 1/4.
Soybean futures traded strongly higher on Tuesday. Short-covering from recent losses and outside markets supported the rally. Weakness in the dollar was driven by news that European leaders have pledged to help Greece with their debt problems. Crop conditions ratings improved slightly last week to 68% good to excellent, which is above the ten-year average of 65%. However, weather forecasts are not calling for extended hot and dry period in the Corn Belt, which helped add some weather premium back into the market. July closed 13 cents higher at $13.48 and November was 14 1/4 cents higher at $13.49 3/4.
Wheat futures were higher on Tuesday, led by the CBOT. After six straight sessions of lower prices, the CBOT was supported by strength in corn and weakness in the dollar index. The KCBT was higher on concern about the HRW wheat production shortfall and the MGE by spring wheat prevented planting. The spring wheat crop is normally 100% planted by now, but is only 91% seeded as of Sunday. This implies that 1.3 million acres of intended spring wheat acreage was left unplanted. CBOT July closed 15 cents higher at $6.74 1/4, KCBT July was 2 1/2 cents higher at $8.03 1/2 and MGE July ended 2 1/4 cents higher at $9.02 3/4.
Cattle futures traded higher on Tuesday. Broad-based commodity strength and bullish cash fundamentals supported the futures market. Weakness in the dollar and strength in the stock market were supportive outside market factors. Cash trade has not yet developed this week, but expectations are for trade to be up $1-$2 from last week. Packer margins remain good and boxed beef prices have been posting strong increases recently. June closed $1.38 higher at $113.20 and August was $1.18 higher at $113.15.
Lean hog futures were higher on Tuesday. Spillover support from cattle, renewed strength in corn and outside market support helped push futures higher today. Pork cutouts were up 88 cents on Monday and cash markets were steady to as much as $2 higher today. Tightening supplies of market ready hogs and improved pork prices are supporting cash, although estimated packer margins remain poor. July ended $1.45 higher at $99.00 and August was $1.30 higher at $97.98.