Wheat futures closed 0.0175 to 0.0375 higher in Chicago, around 0.03 higher in Kansas City and 0.005 to 0.0725 higher in Minneapolis. Futures were supported by strength in neighboring pits and weakness in the US Dollar index. That encouraged light Short-covering after last week's sharp losses. Without this spillover support, Wheat would have likely struggled to attract buying interest amid a lack of supportive fundamental news.

Corn futures ended 0.0225 to 0.06 higher, with Y 2013 contracts leading gains. Futures posted a low-range close. Ongoing concerns about the Corn crop in Argentina and Southern/Central Brazil combined with positive outside markets to limit selling in the Corn market Tuesday. Weekend rains were not as widespread as thought and just scattered showers are in the forecast for South America this week.

Soybean futures closed 0.22 to 0.2525 higher in the Mar through Sept contracts. New-crop futures posted slightly lesser gains. Most contracts finished just off session highs. Soybean futures were supported by a combination of outside market support and South American crop concerns. As a result, traders covered Short positions following last week's sharp losses.

Cotton futures trimmed gains into the close but March through October contracts still posted strong gains to finish 200 to 272 pts higher. Better-than-expected Q-4 Y 2011 economic growth in China eased concerns of a hard landing in China, triggering sharp selling in the US Dollar index and supporting the US stock market.

Lean Hog futures posted slight gains in all but some of the far-deferred contracts. Most contracts finished mid-range for the day. Lean Hog futures were supported by outside markets and improved investor risk appetite. But buying interest eased around mid-morning and the market faced light intra-day profit-taking amid sluggish cash fundamentals.

Live Cattle futures closed 0.10 to 1.05 higher, mid-range for most contracts. Feeder Cattle futures closed steady to 0.325 higher. Nearby live Cattle gapped higher on the open on support from outside markets. The US Dollar index was weaker today on better-than-expected Chinese economic growth data, as well as improved sentiment in Germany. Strength in the DJIA also created a risk on tone in the investment World.

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.