Lean hog futures traded mixed on Tuesday. Front end contracts were supported by optimism that pork export demand will remain strong and on the 68 cent jump in pork cutout prices yesterday. Total pork exports in 2010 were up 3% in volume and 10% in value. Gains were limited and most deferred contracts were lower on profit-taking and weakness in grain trade. April closed 10 cents higher at $92.55 and June was 28 cents higher at $102.35.
Corn futures traded lower on Tuesday. Futures were pressured by follow-through selling from the weakness on Monday and spillover selling from soybeans and wheat. USDA's baseline acreage projection at 92 million acres was above the current trade expectations. However, old-crop contract losses were limited by recent export sales to Mexico and Egypt. March closed 5 1/4 cents lower at $6.90 1/2 and December was 16 cents lower at $5.91 1/2.
Soybean futures were sharply lower on Tuesday. The market was pressured by the cancelation of some old-crop export sales and rising production estimates for the soybean crop in Brazil. Although listed as "unknown destination", it is believed that China has canceled some more old-crop sales and is shifting demand to the soon to be harvested South American crop. March closed 34 3/4 cents lower at $13.68 and November was 32 3/4 cents lower at $13.32 3/4.