Grain Prices Mixed Ahead of USDA Report.

Tuesday's Closing Grain and Livestock Futures
Mar. corn closed at $6.88 and 3/4, up 3 and 1/4 cents
Mar. soybeans closed at $13.86 and 1/2, down 2 cents
Mar. soybean meal closed at $410.90, up $2.00
Mar. soybean oil closed at 49.53, down 43 points
Mar. wheat closed at $7.50 and 1/2, down 3/4 cent
Feb. live cattle closed at $132.55, down 45 cents
Feb. lean hogs closed at $86.35, up 5 cents
Feb. crude oil closed at $93.15, down 4 cents
Mar. cotton closed at 75.12, down 59 points
Jan. Class III milk closed at $18.00, up 3 cents
Feb. gold closed at $1,662.20, up $15.90
Dow Jones Industrial Average: 13,328.85, down 55.44 points

 For overnight futures prices click: http://www.farms.com/markets

Market News and ReCap

Soybeans were narrowly mixed in pre-report position squaring. There was no fresh supportive news, especially from the demand side of the market, but the nearby supply remains tight. The trade’s keeping an eye on weather and early yields across South America while getting ready for the several USDA reports out Friday. The final 2012 soybean and corn production numbers, quarterly grain stocks, monthly carryover, and winter wheat acreage estimates are out at the new release time of Noon Eastern/11 AM Central. Soybean meal was up and bean oil was down on the adjustment of product spreads. South American crop weather over the near term looks generally good.

Corn was modestly higher on technical and commercial buying. Corn was also continuing to get squared up ahead of those USDA numbers due out Friday, January 11. South Korean feedmills bought corn but most of that is expected to be South American origin with potentially a smaller amount from the U.S. due to optional origin purchasing. South American corn is around $25 per ton cheaper than U.S. corn, but both are in fairly short supply at this point and the U.S. interior cash basis is at historically high levels for this time of year. The Major Feedmill Group picked up 137,000 tons of optional origin and the Busan Branch of the Korea Feed Association bought 110,000 tons, also optional origin. Ethanol futures were higher.

The wheat complex was mixed ahead of those upcoming USDA numbers. There was no real fresh news but there are the continued concerns about the drier than normal weather from North to South across the U.S. Plains. Export demand remains extremely slow, with Dow Jones Newswires noting recent South Korean purchases of feed wheat from South America due to its discount to U.S. prices but better quality when compared to Indian wheat. European wheat was higher on the early gains in U.S. trade and weak euro. Israel is tendering for 50,000 tons of optional origin wheat.