Corn futures closed strongly higher on Tuesday. Talk of increased export demand and a technical bounce from recent losses pushed prices higher. A recovery rally in crude oil was also supportive. USDA reported on Friday the sale of 1.1 million tonnes of corn to “unknown destination”, which is believed to be China. Talk was circulating today that China bought another 500,000 tonnes late last week. Traders are looking for good to excellent ratings to improve 1 points in the Crop Progress report this afternoon. September was 18 3/4 cents higher at $6.25 1/2 and December was 15 3/4 cents higher at $6.12 1/2.
Soybean futures traded higher on Tuesday. Spillover support from corn and strength in crude oil and precious metals helped lift the soybean market today. Despite generally favorable growing conditions, some traders see the need for adding weather premium back into the market. However, the Crop Progress report due out this afternoon is expected to show crop ratings improving 1 point last week from the 66% good to excellent ratings the previous week. August closed 9 1/2 cents higher at $13.22 1/4 and November was 5 1/2 cents higher at $13.18.
Wheat futures were sharply higher on Tuesday. Increased export demand on the recent price break and short-covering supported the futures market today. There is talk that Japan is in the market for U.S. wheat and it appear that export trade in the global wheat market has picked up. Gains in Kansas City were limited by seasonal harvest pressure. CBOT September closed 23 1/4 cents higher at $6.35 1/2, KCBT September ended 15 1/4 cents higher at $7.36 and MGE Sep was 28 1/2 cents higher at $8.33.
Cattle futures closed higher on Tuesday. The market turned higher on ideas that the holiday weekend beef clearance was strong. Midday beef prices showed choice cutouts were up 62 cents. Cash cattle traded steady to $1 higher last week at $112-$113. The market is currently looking for cash trade to be steady to higher again this week. August closed 50 cents higher at $113.35 and October was 18 cents higher at $119.85.
Lean hog futures were mostly higher on Tuesday. The discount of futures to cash and ideas that the holiday weekend pork sales were strong helped push futures higher. However, cash trade was steady to lower today, which limit front end futures gains. Cash bids are mostly steady to $1 lower this morning as packers are well bought on slaughter needs. July closed 28 cents higher at $95.78 and August was 20 cents higher at $93.35.