Corn futures closed steady to narrowly mixed on Tuesday. Trade was choppy with light support coming from concern that recent hot and dry weather in southern Brazil and Argentina has hurt crop prospects. Also, weakness in the dollar index and strength in the stock market and crude oil were supportive factors. But the market was unable to turn higher as forecasts call for rain this week in South America and on positioning ahead of the USDA reports due out on Thursday morning. March ended unchanged at $6.52 and May was 1/4 of a cent lower at $6.59 1/4.
Soybean futures traded lower on Tuesday. Profit taking from recent gains weighed on the futures market. Rainfall is forecast for southern Brazil and Argentina this week, but recent hot and dry weather has trimmed yield projections. Weakness in the dollar index and strength in crude oil helped limit losses. January closed 2 cents lower at $12.23 3/4 and March was 1 cent lower at $12.32.
Wheat futures were mixed on Tuesday. Profit-taking from the strong gains on Monday weighed on the CBOT. However, losses are being limited by weakness in the dollar index. The MGE rebounded from recent weakness as traders are gearing up for the USDA reports due out on Thursday morning. Global supply/demand estimates are expected to remain bearish. CBOT March closed 2 cents lower at $6.39 3/4, KCBT March was unchanged at $6.98 and MGE March gained 2 1/2 cents to close at $8.12 1/4.
Cattle futures traded strongly higher on Tuesday. Short-covering from recent losses and easing euro debt concerns helped support the futures market. There is some optimism of steady to firm cash markets this week due to the smaller showlists distributed on Monday. Weakness in the dollar index today was a bullish factor for the beef export market. February closed $1.25 higher at $121.20 and April was $1.10.
Lean hog futures closed higher on Tuesday. The market was supported by short-covering, firm cash markets and the 87 cent jump in pork cutouts on Monday. Outside markets were also supportive for trade. The agriculture minister in China reported that foot-and-mouth disease was found in a central province. This could be an indication that demand from China will remain strong. February ended 93 cents higher at $84.30 and April was 38 cents higher at $87.35.