Lean hog futures traded lower on Tuesday, but losses were trimmed into the close. Profit-taking from record high levels weighed heavily on futures, but losses were limited by bullish cash fundamentals. Strong export demand and domestic consumption is supporting pork prices while slaughter is slowing seasonally. Hog supplies are also tightening, which should help cash hog prices. April closed 50 cents lower at $93.70 and June was 60 cents lower at $103.25.
Corn futures closed higher on Tuesday. Old-crop contracts were supported by ideas that USDA will tighten its ending stocks projection on Friday following the smaller-than-expected March 1 stocks number. But gains were limited by news that China is raising interest rates in an attempt to cool inflation, which is bearish for commodities. May ended 6 1/2 cents higher at $7.66 3/4 and December was 1 1/4 cents higher at $6.46 3/4.
Soybean futures were solidly lower on Tuesday. The market has retreated from the last three days following the bullish response last Thursday on the Prospective Planting and Grain Stocks reports. Futures were pressured by talk that China is switching export purchases to the newly harvested South American crop. News that China will raise interest rates to cool inflation also encouraged the selling pressure today. May closed 10 3/4 cents lower at $13.73 3/4 and November was 10 1/4 cents lower at $13.78 3/4.