Corn futures closed higher on Tuesday. A friendly Supply/Demand report helped support futures. USDA lowered their ending stocks estimate for 2009/10 to 1.738 billion bushel, down about 125 million from trade estimates and down 161 million from last month. The first 2010/11 ending stocks estimate of 1.818 billion bushels was slightly below trade expectations. Further gains were limited by the strong pace of planting and strength in the dollar. July ended 6 1/2 cents higher at $3.77 and December ended 6 1/2 cents higher at $3.93.
Soybean futures were higher on Tuesday. Futures opened lower on outside market pressure and reaction to the Supply/Demand report. USDA left 2009/10 ending stocks unchanged at 190 million bushels and pegged 2010/11 ending stocks at 365 million, up slightly from the average trade guess. But spillover support from corn, planting progress being slightly below trade expectations last week at 30% and the rally in the stock market provided support. July closed 5 cents higher at $9.66 and November was 2 3/4 cents higher at $9.37 1/2.
Wheat futures traded higher on Tuesday. The market made a small short-covering bounce with help from the rally in corn. The Supply/Demand report was neutral to slightly bearish for wheat. USDA left 2009/10 ending stocks at 950 million bushels, but ending stocks for 2010/11 are estimated to grow to 997 million bushels, which was slightly above the average pre-report trade estimate. CBOT July was 1/2 of a cent higher at $4.93 1/4, KCBT July closed 1 1/2 cents higher at $5.09 1/2 and MGE July ended 5 1/4 cents higher at $5.33 1/4.
Cattle futures closed higher on Tuesday. The firm tone in the cash market this week and the upturn in the stock market helped push futures higher. Choice beef prices were up 35 cents at midday, again hitting the highest level since July 2008. In the Supply/Demand report this morning, 2010 projected production was reduced and exports were increased. June ended 10 cents higher at $96.80 and August was 30 cents higher at $95.38.
Lean hog futures settled lower on Tuesday. Weakness in the cash market and strength in the dollar weighed on futures. Pork prices were up 40 cents on Monday, but there is concern that cutout values will decline once Memorial Day buying has been completed. June closed 53 cents lower at $85.33 and July was 68 cents lower at $85.48.