Corn futures closed mixed on Tuesday. Front end contracts were slightly lower on profit-taking and long liquidation ahead of the USDA Supply/Demand report. News that China was raising interest rates to fight inflation was bearish for commodities. But losses were limited by spillover support from wheat and weakness in the dollar index. March ended 1 cent lower at $6.73 3/4 while December was 1 3/4 cents higher at $6.03 3/4.  


 


Soybean futures traded solidly higher on Tuesday. The market opened lower on news that China was raising interest rates to fight inflation. However, the market turned higher on positioning ahead of the USDA Supply/Demand report, spillover strength in wheat and weakness in the dollar. Traders are looking for USDA to tighten its world soybean stocks number tomorrow morning. March closed 9 3/4 cents higher at $14.34 1/4 and November was 11 1/2 cents higher at $13.77 1/2.


 


Wheat futures traded strongly higher on Tuesday. The market was supported by strong demand for high protein wheat on the global market and increasing concerns about drought in China’s wheat areas. The United Nations issued a warning that drought in China could further tighten world wheat supplies. Weakness in the dollar and concern about the condition of the winter wheat crop in the Plains were also supportive factors. CBOT March ended 15 1/2 cents higher at $8.74 1/4, KCBT March was 18 1/2 cents higher at $9.72 and MGE March closed 18 1/4 cents higher at $10.09 1/2.


 


Cattle futures closed lower on Tuesday. Weakness in boxed beef prices and concern about a slower pace of beef exports weighed on futures. Choice and Select cuts were down $1-$2 on Monday, although choice cutouts were up 24 cents at midday. There was news that Japan banned beef from a Nebraska plant due to documentation issues, although is not expected to have much effect on the market. February closed 8 cents lower at $107.65 and April was 50 cents lower at $111.25.


 


Lean hog futures traded mostly lower on Tuesday. Profit-taking weighed on futures after hitting new highs on Monday. But losses were limited by recent strength in the cash market. Packer margins remain positive and although they have tightened recently are strong enough to push bids higher. Tightening supplies of market ready hogs remain a supportive factor. February closed 13 cents lower at $84.83 and April was 58 cents lower at $91.25.