Corn futures ended higher on Wednesday, but gains were trimmed near the close on what looked like selling related to the final round of fund rebalancing. The market tone remains strong due to strong demand projections and the tight ending stocks estimate. March settled 5 cents higher at $4.08 while December was 1 1/4 cents higher at $3.89.

Soybean futures ended higher on Wednesday. Futures hit the highest level since July of 2005 on spillover strength from corn and fund buying. As corn moved higher, soybeans followed in order to not lose any more acres this spring. March ended 13 1/2 cents higher at $7.22 and November was 13 1/4 cents higher at $7.70 1/2.



Wheat futures closed higher on Wednesday. Firm corn prices and tight supply/demand fundamentals are overshadowing all other market factors. Wheat fundamentals remain weak with sluggish export demand and improved conditions in the hard red winter wheat belt. CBOT Mar climbed 13 cents to close at $4.77. KCBT Mar was 6 cents higher at $4.98 while MGE Mar closed 10 1/2 cents higher at $5.02.



Cattle futures closed mixed on Wednesday. The market traded in a narrow range today. Forecasts for another round of rain and snow in the Southwest underpinned the February contract. Beef cutout values posted the first significant decline of the year this morning, but packer margins are still quite favorable and firm cash prices are expected this week. February was 27 points higher at $92.55. April was 22 points lower at $93.95. January feeder cattle fell 37 points to close at $93.92.



Lean hog futures ended higher on Wednesday. The rally was fueled by stronger cash hog prices, higher corn prices, and fund buying. Deferreds were supported by firm corn prices with ideas that high feed costs could lead to a cutback in production by mid-year. February ended $1.25 higher at $61.87. June ended the day up 83 cents at $74.93.