Corn futures closed higher on Wednesday. The market rallied to the highest level in 10-years, but profit-taking ahead of the close trimmed gains. Fund buying was aggressive today as traders are gearing up for the USDA reports Thursday, which are expected to show a decline in production from last month's estimate. December ended 6 3/4 cents higher at $3.57 3/4 and March was 6 3/4 cents higher at $3.73 1/2.



Soybean futures gapped higher at the open and hit another contract high on Wednesday. The soybean market continues to follow corn in an effort to keep from losing too many acres next spring. However, even with the strength in soybeans, the soybean/corn price ratio still favors corn. November ended 11 1/2 cents higher at $6.66 1/4 and January was 10 3/4 cents higher at $6.78.



Wheat futures ended higher on Wednesday. Gains in corn helped wheat prices rally although gains were trimmed once corn slipped from the day's high. Speculative buying remains a supportive factor due to the tight global stocks of wheat. However, there has been some caution recently due to sluggish demand for U.S. wheat. CBOT Dec ended 7 cents higher at $5.04, KCBT Dec ended 5 3/4 cents higher at $5.31 1/2, and MGE Dec was 4 1/2 cents higher at $5.14 1/4.



Cattle futures recovered from early weakness to close higher on Wednesday. The market traded lower most of the session on ideas of lower cash trade this week, declining boxed beef prices, and rising corn prices. However, ideas recent losses were overdone led to a short-covering rally ahead of the close. December ended 15 cents higher at $85.45 and February was 28 cents higher at $89.20. November feeder cattle fell 68 cents to $98.95.



Lean hog futures ended higher on Wednesday, with many contracts posting new highs. Active fund buying supported the market despite weaker cash prices. Cash fundamentals remain bearish due to ample supplies of hogs and seasonally declining pork cutout values. December was 68 cents higher at $65.30 and February was $1.05 higher at $68.65.