Corn and wheat prices fall on profit-taking

Corn futures traded strongly lower on Tuesday. Profit-taking weighed on the market ahead of the USDA annual outlook forum later this week. USDA is expected to increase its acreage estimate for corn this year, which would raise its production estimate to a record level. The market failed to find support from outside markets, but weakness in the dollar index and strength in the stock market and crude oil helped limit further losses. March closed 12 1/4 cents lower at $6.29 1/2 and December ended 4 1/2 cents lower at $5.63 3/4.   

Soybean futures settled slightly higher on Tuesday. The market was choppy during the trading session. Fresh export demand for U.S. soybeans and concern about the declining production estimates for South American soybeans supported the market. However, gains were limited by spillover weakness in corn and on traders being cautious ahead of the USDA annual outlook conference later this week. March closed 3 1/2 cents higher at $12.71 and November was 1/4 of a cent higher at $12.62 1/4. 

Wheat futures closed lower on Tuesday. The market was pressured by profit-taking from gains last week as traders were positioning for USDA’s annual outlook forum later this week. Ideas of a larger corn crop are bearish for wheat and especially SRW as it is a competing feedgrain. Weather forecasts call for some snowfall in the northern Plains, which would provide welcomed moisture ahead of spring planting. CBOT March ended 11 cents lower at $6.33, KCBT March was 12 1/2 cents lower at $6.77 and MGE March closed 5 1/2 cents lower at $8.16 3/4.  

Cattle futures traded mostly higher on Tuesday. The market was pressured lightly much of the day by profit-taking and technical selling as futures are at or near contract highs. However, front end futures turned higher at the close following the strength in the cash market last week and optimism for strength to continue this week. Smaller showlists and recent strength in beef prices are fundamentally supportive factors. April was 30 cents higher at $128.90 and June ended 20 cents higher at $128.68.

Lean hog futures closed mostly lower on Tuesday. Pork cutout prices were down 41 cents on Monday and the futures market was pressured by concern that pork demand is sluggish at current prices. In addition there is talk that supplies of pork in cold storage are increasing. Losses were limited by steady to firm cash bids. Packer margins are poor, but some plants need hogs to fill slaughter schedules following plant closures on Monday for Presidents Day. April ended 55 cents lower at $89.83 and June was 3 cents lower at $99.35.