Chicago agricultural commodities settle mixed

Chicago Board of Trade (CBOT) grains futures closed mixed on Tuesday with soybean futures climbing about 1 percent, as traders adjusted positions a day ahead of a U.S. government crop report.

Corn futures were modestly higher while wheat fell, pressured by a stronger dollar and better-than-expected weekly U.S. condition ratings.

The most active corn contract for July delivery added 0.5 cent, or 0.14 percent, to settle at 3.665 dollars per bushel. July wheat delivery dropped 4 cents, or 0.92 percent, to close at 4.295 dollars per bushel. July soybeans rose 9.25 cent, or 0.96 percent, to 9.74 dollars per bushel.

Investors await tomorrow's U.S. Department of Agriculture May Supply/Demand Report that is expected to show larger U.S. ending stocks for corn, soybeans and wheat.

In the outside markets, the Brent crude oil market is 0.44 dollar per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 17 points lower.

Jack Scoville, the PRICE Futures Group's senior market analyst, said the upward movement seemed to be a mystery.

"There are reports that China will reduce VAT taxes starting July 1 to support local crushers, but I can't see that as a reason for the market to rally," Scoville said.

Wet conditions that have slowed planting in some U.S. crop areas added support. The USDA on Monday said the U.S. soybean crop was 14 percent planted, behind the five-year average of 17 percent. Endit