Chicago and Kansas City Wheat saw mixed price action at times, but favored a weaker tone and closed lmostly 0.07 to 0.09 lower in Chicago; mostly 0.05 to 0.07 lower in Kansas City. Minneapolis Wheat closed mixed amid Bull spread unwinding. Buying interest in the wheat pit was limited by strength in the USD index. In fact, as the USD strengthened in late trade, it contributed to the low-range close in futures at all 3 exchanges.

Corn futures ventured into positive territory a few times today, but ultimately settled with losses of 0.045 to 0.06 in old-crop contracts while new-crop futures finished 0.0175 to 0.045 lower. Traders in the Corn market focused on booking profits amid a firmer USD Tuesday. USD strength can be attributed to the stirring of eurozone concerns, Moody's downgraded the credit ratings of 6 European nations and warned that 3 other countries may be next.

Old-crop Soybean futures closed + 0.02 to 0.03, the tweener Sept contract finished unchanged and new-crop contracts were 0.015 to 0.02 lower. Futures finished mid-range across the board. South American crop concerns and supportive export demand countered disappointing domestic demand news and light profit-taking pressure.

Cotton futures ended mixed after a choppy and narrowly traded session. Mar and May cotton closed 0.73 and 0.30 higher, respectively, with the rest of the market down 6 to 70 pts. Upside potential was limited by negative outside markets. The USD strengthened through the day on worries about the debt crisis in Europe.

February lean Hog futures expired + 0.125 higher at 87.10. Apr through Dec contracts finished 0.60 to 1.65 higher and on or near session highs. Lean Hog futures were quiet through the morning ahead of the Feb contract's expiration. Once the Feb contract ceased trading, however, buying interest picked up amid hopes prices will improve seasonally into Summer.

Cattle futures gapped higher on the open and did not look back. Live Cattle finished just off their highs, with gains of 0.65 to 1.125. Feeder Cattle futures finished 1.175 to 1.525higher. A sharply higher US Dollar index took a backseat to improving cash market prospects Tuesday for Cattle traders.

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.