Corn futures traded higher on Tuesday. Fund buying was triggered by spillover support from wheat and further indications of a smaller Argentine corn crop pushed prices higher. Recent reports indicate that Argentina’s 2011/12 corn crop will be smaller than last year due to drought and might crimp world corn supplies at a time of growing demand. March is 6 1/2 cents higher at $6.38 1/4 and May is 6 3/4 cents higher at $6.44 1/2.
Soybean futures closed higher on Tuesday. The market was supported by ideas of solid demand and lowered production estimates for the South American crop. Oilseed analyst group Oilseed lowered its forecast for 2012 soybean crops in Argentina and Brazil by a combined 4.0 million metric ton because of the recent drought. March ended 13 3/4 cents higher at $11.99 and May was 13 1/4 cents higher at $12.08 1/2.
Wheat futures were solidly higher on Tuesday. Gains were attributed to short-covering and concern about cold temperatures in Europe and the former Soviet Union that has likely caused some winterkill. Much of the region has inadequate snow cover to protect the crop. CBOT March ended 21 1/4 cents higher at $6.66, KCBT March was 18 cents higher at $7.15 1/2 and MGE March closed 8 3/4 cents higher at $8.27 3/4.
Cattle futures closed higher on Tuesday. Futures were able to rebound from losses the previous session. Early strength in the stock market and weakness in the dollar index pushed prices higher early. However, once the stock market turned lower and the dollar reversed higher the gains were able to hold for cattle futures. Showlists are generally larger this week and packer margins remain deeply in the red, which could pressure the cash market again this week. February ended 93 cents higher at $124.85 and April was 83 cents higher at $128.58.
Lean hog futures traded solidly higher on Tuesday. Short-covering and the firming tone in the cash market were supportive for futures trade. Pork cutouts were up 65 cents on Monday and packers are raising bids to get enough hogs to fill slaughter schedules despite poor processing margins. February ended $1.08 higher at $87.53 and April was $1.73 higher at $88.88.