Corn futures closed higher on Tuesday. The market was able to find strength from the positive supply and demand outlook and follow-through from Monday's strong technical performance. Harvest progress is running a little below normal and will be slowed in many areas again this week. December closed 6 cents higher at $3.24 1/4. March settled 5 1/2 cents higher at $3.36 3/4.



Soybean futures settled higher again on Tuesday. Fund buying was again supportive. Bullish momentum and the need to keep in line with corn and wheat for acreage next spring helped support futures. The November contract high today at $6.25 is nearly 88 cents above the mid September low. November ended 6 cents higher at $6.23 1/2 and January was 6 1/2 cents higher at $6.37.



Wheat futures were mostly higher on Tuesday. Reports that Iraq is shopping for additional wheat in the world market provided fundamental support. In addition, higher corn prices spilled over into the wheat market. Monday's reversal from early lows was a positive technical signal. CBOT Dec ended 5 1/2 cents higher at $5.22 1/2. KCBT Dec was 3 cents higher at $5.45 1/4. MGE Dec was 5 cents higher at $5.23 1/4.



Cattle futures closed lower on Tuesday. Higher corn prices contributed to the defensive market tone, amid concerns that rising feed costs will prompt cattle feeders to sell more aggressively. Fundamental buying helped limit losses as boxed beef cutout values continue to trend higher. December fell 35 points to close at $88.35. February was 52 points lower at $90.95. November feeder cattle fell 17 points to $104.82.



Lean hog futures close mixed on Tuesday as traders were searching for direction today. Cash markets were generally steady to lower, but there is talk that prices will firm later this week. Demand from packers remains strong due to aggressive slaughter schedules. December is 18 cents lower at $59.85 and February is 8 cents higher at $63.10.