Chicago March corn and soybean contracts rose while March wheat contract dropped Tuesday, though all within small ranges.

The most active corn contract for March delivery gained 0.25 cents, or 0.03 percent, to close at 7.925 dollars per bushel. March wheat lost 2.25 cents, or 0.29 percent, to settle at 7.77 dollars per bushel. March soybeans rose 4 cents, or 0.28 percent, to close at 14.517 dollars per bushel.

March corn closed the session almost unchanged. Positive export demand data released Monday was taken as a short-term support to corn.

Improved margins for domestic ethanol production also supported corn. Public data shows that Iowa ethanol margins have jumped to - 30 cents per bushel, as against -58 cents per bushel the week prior. Due to high corn prices and high ethanol inventories, Valero Energy Corporation has idled 3 of its 10 ethanol plants in the last 3 months of 2012; and Texas would also idle production.

Feed demand remains unknown until the March stocks report.

Wheat fell Tuesday on thoughts that export demand may not pick up fast enough to meet current export estimate by the U.S. Department of Agriculture (USDA) for this crop year.

Meanwhile, the comments that domestic wheat stocks will remain healthy until June 22 led to some profit taking, dragging down wheat prices slightly.

Weather outlook for the U.S. eastern Corn Belt remains favorable, thus providing a solid foundation for growth of Chicago wheat crop once it comes out of dormancy.

Nevertheless, wheat may find some support in deteriorating wheat crop condition ratings in the U.S. western plains, when Kansas wheat was rated 20 percent good/excellent, as against 24 percent at the end of December.

Dry weather forecast for Argentina in the next 10 days boosted soybean slightly, while rainfalls in northern Brazil this week may delay harvest in some regions. It is learned that vessel lineup is stacking up at ports of Brazil as shippers wait for new crop supplies. Delay in harvest and supply chain disruption are seen as short-term supportive to soybean.

Market analysts hold that if harvest delay continues in South America, the world demand for soybean may shift back to the U.S. market. Enditem

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