Corn futures closed higher on Tuesday. Weakness in the dollar index, strength in the stock market and positioning ahead of the USDA reports due out on Wednesday morning helped support futures trade. U.S. corn production is expected to be revised slightly lower and ending stocks are expected to decline. December closed 7 1/4 cents higher at $6.60 1/2 and March was 5 3/4 cents higher at $6.71.
Soybean futures traded higher on Tuesday. The market was supported by weakness in the dollar and short-covering following the losses on Monday as traders were evening positions ahead of the USDA reports due out Wednesday morning. Traders are not expecting USDA to change production much, but ending stocks are expected to be revised higher on ideas that the export forecast will be lowered. January closed 3 1/4 cents higher at $12.05 and March ended 3 1/4 cents higher at $12.14 3/4.
Wheat futures closed strongly higher on Tuesday. Positioning ahead of the USDA reports due out on Wednesday morning helped rally wheat futures. Outside markets were also bullish for wheat as the dollar index traded lower today. Traders are looking for a decline in wheat ending stocks of about 20 million bushels from the October estimate. The MGE was supported by tight supplies of high protein spring wheat and on ideas that USDA will cut its estimate of this year’s crop on Wednesday. CBOT Dec ended 18 1/4 cents higher at $6.57, KCBT December was 14 cents higher at $7.38 1/2 and MGE December closed 18 cents higher at $9.46 1/4.
Cattle futures turned lower on Tuesday. The market was higher much of the day on support from strengthening beef prices and outside markets. The stock market was higher and the dollar index lower today. But futures turned lower as packer margins remain poor raising ideas that cash market trade could turn lower. December closed 65 cents lower at $122.75 and February was 48 cents lower at $124.80.
Lean hog futures turned lower on Tuesday. The weak tone in the cash market continues to weigh on the futures market. Pork prices fell to the lowest level in five months last week, although cutouts rebounded some on Monday. Seasonally sluggish demand and rising supplies have combined to pressure the cash market and futures trade. December ended 40 cents lower at $85.23 and February was $1.08 lower at $87.33.