Corn futures closed higher on Tuesday. Spillover support from soybeans, the 120,000 tonne export sale to an "unknown destination" in USDA's daily reporting system and weakness in the dollar were supportive factors. In addition, demand for corn used for ethanol production remains strong and cold and wintery weather in the Plains and Midwest will increase feed needs. March ended 6 1/2 cents higher at $6.66 and December was 4 3/4 cents higher at $5.96.
Soybean futures traded strongly higher on Tuesday. The market was supported by the continued port strike in Argentina, weakness in the dollar and cold weather across much of the U.S. that will increase soybean meal feed needs. The port strike has been going for a week and so far 45 ships have reportedly been stopped from being loaded. March closed 25 cents higher at $14.38 and November was 27 cents higher at $13.68.
Wheat futures closed mostly lower on Tuesday. Profit-taking from the big gains on Monday and concern about delayed wheat shipments to Egypt due to political unrest weighed on futures. But losses were limited by the sharp decline in the dollar and recent improvement in export demand. The KCBT also found support from dry conditions in the western Plains and only limited snowfall from the recent weather system. CBOT March ended 5 cents lower at $8.35 3/4, KCBT March was 3/4 of a cent lower at $9.24 and MGE March closed unchanged at $9.79 3/4.
Cattle futures closed mixed on Tuesday. Profit-taking weighed on futures this morning, but the market turned mixed on support from firm beef prices and the cold and wintery weather in the Plains that will slow feedlot performance and disrupt marketings. Cash trade is not likely until later in the week, but it is expected to steady to firm compared with last week. February ended 5 cents higher at $109.00 and April was 60 cents higher at $114.65.
Lean hog futures were strongly lower on Tuesday. The market was pressured by profit-taking from the rally on Monday that had pushed the June contract to a new record high for a lean hog contract. With futures already at a premium to cash, future turned lower despite supportive cash fundamentals. Pork cutouts have held firm and wintery weather in the Midwest is expected to limit marketings for several days this week. February closed $2.18 lower at $85.08 and April was 85 cents lower at $93.15.