Corn futures closed lower on Tuesday. The market was pressured by follow-through selling from the limit losses on Monday after the bearish USDA reports, strength in the dollar and sluggish export demand. Underlying support came from the rally in soybeans and dry conditions in Argentina that are hurting corn yield prospects. March closed 18 1/4 cents lower at $3.62 1/2 and July was 18 cents lower at $3.83 1/2.

Soybean futures settled higher on Tuesday, but were well below the highs for the day. The market was supported by drought conditions in Argentina that are trimming yield prospects and continued export demand from China. Gains were limited by weakness in corn and strength in the U.S. dollar today. March ended 5 1/2 cents higher at $9.71 1/2 and July was 4 3/4 cents higher at $9.91.

Wheat futures were higher on Tuesday. The market was supported by the rally in soybeans and the smaller than expected winter wheat seedings number from USDA yesterday. However, gains were limited by the increase in U.S. and world ending stock estimates, the recent sluggish pace of exports and strong gains in the dollar index. CBOT March closed 1 cent higher at $5.70 3/4, KCBT March ended 6 cents higher at $6.01 and MGE March settled 8 3/4 cents higher at $6.37.

Cattle futures closed higher on Tuesday, led by gains in the front end contracts. Short-covering from recent weakness and expectations for firmer cash markets this week supported prices. Boxed beef prices continue to climb, with choice cuts up $1.39 at midday following the $2.12 jump on Monday. Fund liquidation trimmed gains late in the session. February closed $1.18 higher at $84.08 and April ended $1.08 higher at $87.58.

Lean hog futures traded lower on Tuesday. Weaker corn prices were once again a source of pressure for hogs. Falling stock prices also played a role in commodity markets in general. Front end losses were limited by the firm cash market and cold Midwest weather that has slowed hog marketings. February ended 3 cents lower at $61.45 and April was 20 cents lower at $67.28.