Corn futures were higher Tuesday as the market managed to continue the rally that began late Monday. The most negative factor facing corn futures over the near-term is fund long liquidation and it was absent on Tuesday. Even so, in thin holiday trade the market remains vulnerable if the funds turn sellers. Funds are estimated to be holding a net long position of nearly 290,000 contracts. March settled 7 1/2 cents higher at $3.73 1/4 while December 07 was 3 3/4 cents higher at $3.65 1/2.



Soybean futures closed higher on Tuesday. Exporters reported a 100,000 mt U.S. soybean sale to China. Soybean futures also gathered strength from the rally in corn. January futures rallied into a chart gap left from Monday in the low $6.50s. Monday's downside breakout of a possible head and shoulders top remains intact with Tuesday's rally challenging resistance along the neckline. January ended 5 1/2 cents higher at $6.53 1/2. November was 5 1/2 cents higher at $7.12 1/4.



Wheat futures were mixed on Tuesday. Kansas City futures were pressured by rain and snow across the dry areas of the Plains over the next day or so that will help boost soil moisture. CBOT wheat rebounded after recent losses largely due to the recovery in corn. New-crop wheat futures continue to hold above up trending support lines. CBOT Mar was up 4 1/2 cents at $4.92. KCBT Mar was a penny lower at $5.02 and MGE Mar gained 1/4 cent to close at $5.02 1/4.



Cattle futures were lower on the close Tuesday. After a sharp storm related rally, futures edged lower on Tuesday. Losses were limited by ideas that the Cattle on Feed report will show a steep drop in November placements. Beef prices were down on Tuesday, which added to weak tone in futures. December was 2 points lower at $86.80 while February fell 40 points to close at $90.08. January feeder cattle were down 100 points to close at $99.00.



Lean hog futures closed higher on Tuesday. Futures bounced back after recent losses even though cash prices continued to drift lower. Pork prices and packer margins have improved. Another winter storm may slow movement this week helping to support cash bids. Futures trading activity is light, though. February rallied 85 cents to close at $62.72. June hogs finished the day 65 cents higher at $73.28.