Corn futures were a few cents higher Tuesday finding strong technical buying interest and spillover support from double digit gains in the soybean market. March corn futures climbed to the highest level since December 1 and the new crop December futures contract set a new contract high Tuesday morning. March corn closed 4 cents higher at $3.88 and the December 2007 contract was up 1/2 cent at $3.71 1/2.



Soybean futures were solidly higher Tuesday led by the surging soyoil market. Flooding in Indonesia sent palm oil prices soaring in Asia to set the bullish tone in the soybean market. Despite the solid gains Tuesday, weather remains favorable in South America and early prospects favor record crops in Brazil and Argentina. The January soybean contract was 12 cents higher at $6.71 1/2 and November was up 12 1/2 cents at $7.30.



Wheat futures were also solidly higher, finding strong technical support and spillover from strength in corn and soybeans. Wheat markets have rebounded strongly since early last week despite recent favorable moisture in the Plains. Another storm system is in the forecast for the southern Plains late this week. CBOT March climbed 2 3/4 cents to close at $5.16 3/4. Kansas City March was up 2 cents at $5.20 and MGE March was 3 1/4 cents higher at $5.21 1/4.



Cattle futures closed higher Tuesday, finding support from forecasts for a winter storm in the southern Plains late this week. The Cattle on Feed report Friday was also mildly positive showing a six percent increase in November marketings. Boxed beef cutout values nudged higher this morning, suggesting that the recent slide in beef prices is over. February was up 27 points at $90.10 and the April contract closed 25 points higher at $91.72



Lean hog futures slipped to a decisively lower close after starting on a firm note. Cash prices in the Midwest were 50 cents to a dollar higher to provide early support. However, futures ran into heavy selling pressure by mid morning amid concerns that the Hogs and Pigs report due out Wednesday afternoon may show more expansion than expected. February lean hogs closed 70 points lower at $62.35 and June was down 55 points at $73.00.