U.S. grain and soybean futures ended higher Tuesday, as a lack of farmer selling helped corn rebound from multi-month lows.

Corn for December delivery at the Chicago Board of Trade ended up 5 cents to $5.85 1/4 per bushel, up from an early low of $5.70, which was the lowest price for front-month corn in a year.

March corn, the most-active contract, also ended up, rebounding from 9-month lows early in the session to close up 5 1/2 cents to $5.96 1/2.

Traders said corn led the way higher, as the market shook off the early losses, which were fueled by persistently sluggish export demand. The higher close staves off what traders said would have been a negative close technically, one that would have likely prompted trend-followers to sell.

A lack of farmer selling has underpinned the market, and the downturn in futures hasn't prompted them to release supplies.

"Basis is tight and farmers aren't selling a lot of corn, suggesting it's not there," says Joel Karlin of Western Milling. Basis is the difference between cash market and futures prices.

Other analysts said that farmers do have grain to sell, but that after making strong profits this year as grain prices soared, they have the luxury of holding on to the grain and waiting for prices to rebound in the new year.

Regardless of what happens over the next few months, corn supplies are going to remain tight in 2012, domestically and globally, added Shawn McCambridge, senior grains analyst for Prudential Bache.

But lackluster export sales have cast a negative tone over the market in recent weeks. A large purchase of European corn by Japan, which typically relies on U.S. supplies, highlighted those concerns Tuesday.

"We [the U.S.] just don't have our traditional export customers. If we're more expensive, they're going to head down the road," said Chad Henderson, an analyst with Prime Ag Consultants, a Wisconsin brokerage.

Soybean and wheat futures joined in the rally Tuesday. CBOT soy for January delivery ended up 3 1/4 cents at $11.29 1/2 a bushel

Uncertainty about the soy crop in South America, where forecasts are lacking rain, is also underpinning prices, although some traders are dismissive of those concerns. Forecasts call for mostly dry weather across key growing regions over the next several days.

"There's been more talk this week of South American weather turning drier, but it's just talk," Tim Hannagan of PFG Best said in a report to clients.

December CBOT wheat ended flat at $5.98 3/4 while other contracts closed higher. December wheat at the Kansas City Board of Trade ended up 1/2 cent to $6.67 and Minneapolis Grain Exchange December wheat closed up 6 cents to $8.54 1/4.

Other Markets

U.S. rice futures closed higher, rebounding from a recent slump as firmer cash prices underpinned the market.

Rice futures, which have tumbled throughout the fall, are cheap compared to cash prices, said Price Futures Group Vice President Jack Scoville. "The cash market is pretty dead, but it's quoted higher" he said.