Corn futures traded higher on Tuesday. The market was supported by concern about the crop in Argentina and outside markets. Hot and dry weather continues to stress the corn crop in Argentina and forecasts call for mostly dry weather this week in major growing regions. Weakness in the dollar index and strength in the stock market and crude oil were also supportive factors. March closed 4 1/2 cents higher at $6.04 and May was 4 1/4 cents higher at $6.10 3/4.
Soybean futures closed strongly higher on Tuesday. Hot and dry weather in Argentina remains a bullish concern as weather conditions are stressing the soybean crop and lowering yield potential. Better-than-expected fourth quarter economic data from China was a supportive factor as they are a major buyer of U.S. soybeans. Weakness in the dollar index and strength in equity market helped extend the gains. March ended 25 1/4 cents higher at $11.83 1/2 and May was 24 3/4 cents higher at $11.92 1/2.
Wheat futures were higher on Tuesday. Weakness in the dollar index and spillover support from corn and soybeans helped push wheat prices higher. However, gains were limited by bearish supply and demand fundamentals. Global wheat supplies are large and export demand for U.S. wheat remains lackluster. CBOT March closed 2 1/2 cents higher at $6.04 3/4, KCBT March was 3 cents higher at $6.73 and MGE March closed 7 1/4 cents higher at $8.08 1/2.
Cattle futures are closed higher on Tuesday. Strength in the cash market late last week and outside market strength supported futures trade. Cash trade jumped $2-$3 on live basis late last despite poor margins. Boxed beef prices continue to decline as demand is sluggish. However, weakness in the dollar index today is a bullish factor for exports and strength in the stock market is a positive indicator for beef demand. February ended $1.05 higher at $123.53 and April was 40 cents higher at $126.80.
Lean hog futures traded higher on Tuesday. Strength in pork cutouts on Monday and a firm tone in the cash market helped support the market. Outside markets were supportive as the dollar index traded lower while the stock market was higher. Gains were limited by large hog weights that will help keep pork supplies large despite an expected seasonal decline in hog numbers. February ended 18 cents higher at $85.78 and April was 35 cents higher at $87.40.