CORN CLOSES SLIGHTLY HIGHER TUESDAY.

DES MOINES, Iowa -- On Tuesday, the corn market ended higher, while wheat and soybeans dropped.


At the close, the March corn futures finished 3¾¢ higher at $3.55¾, and new-crop December 2017 futures closed 3½¢ higher at $3.83½ per bushel.


March soybean futures finished 9¢ lower at $9.95, while November 2017 soybean futures ended 6¢ lower at $9.83¼.


March wheat futures closed 1½¢ lower at $4.06½.
March soy meal futures settled $4.50 a short ton lower at $312.10. March soy oil futures ended 0.15¢ higher at 34.81¢ per pound.


In the outside markets, the Brent crude oil market is $1.34 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 31 points higher at 19,803 points.


Dustin Johnson, EHedger LLC, says that the recent rainfall in the South American forecast is set to alleviate some of the dryness concerns.


“Overall, the impact of the current dry conditions is confined to an area that would still suggest +100 million MT crop is possible out of Brazil. The focus is shifting to the Index Fund rebalancing, which is supposed to shift toward corn. Also the corn-bean ratio is ultra-high leading into the January reports, so some steam could come out of them as traders position for that release,” Johnson says.
Bob Linneman, Kluis Commodities broker, says it’s worth watching the South American crop weather and outside money flow to get a handle on grain market direction.


“Areas of South America remain dry, while other areas are experiencing flooding. We may not see any major allocation of money based on the current weather as everyone awaits the upcoming USDA report,” says Linneman in a daily note to customers. BY MIKE MCGINNIS.