Corn futures were strongly lower on Tuesday. The December contract fell to the lower level in three weeks on technical selling and some talk that early harvest results are better than expected. USDA raised its crop condition rating to 53% good to excellent, up 1 point from the previous week. There is increasing concern that high prices are slowing demand for corn. December closed 23 cents lower at $7.22 1/2 and March was 22 1/4 cents lower at $7.36 1/4.
Soybean futures traded lower on Tuesday. The market was pressured by spillover weakness from corn and wheat and follow-through weakness from the bearish USDA reports yesterday. But losses were limited by ideas that frost later this week in the upper Midwest could harm some of the soybean crop. November closed 4 1/4 cents lower at $13.91 3/4 and January was 3 3/4 cents lower at $14.02 1/2.
Wheat futures closed strongly lower on Tuesday. Spillover pressure from corn and the bearish global supply/demand outlook weighed on futures. Advancing harvest in Russia and Kazakhstan is adding to global wheat supplies. Demand for U.S. wheat is sluggish and export competition is expected to increase. In addition, forecasts call for some much needed rainfall in the southern Plains ahead of the HRW wheat seeding. CBOT December ended 25 1/4 cents lower at $7.02, KCBT December was 23 1/2 cents lower at $8.02 1/2 and MGE December traded 22 1/2 cents lower at $8.79.
Cattle futures closed mostly higher on Tuesday. Rising boxed beef prices and ideas of firm cash trade this week supported the market. Boxed beef prices were up $1.70 on Monday and at midday were up $1.92 for choice cuts and $1.20 for select cutouts. But gains were limited by concern that high priced beef will limit demand due to the sluggish U.S. and global economies. October ended 20 cents higher at $119.60 and December was $1.03 higher at $119.75.
Lean hog futures traded mixed on Tuesday. Front end contracts were supported by the steady to firm tone in the cash market. Short-bought packers and favorable packer margins are expected to help cash trade this week. However, contracts for 2012 were all lower on concern about seasonally increasing numbers of market ready hogs. October closed 48 cents higher at $87.15 and December was 10 cents higher at $82.83.