Corn futures closed 12 to 15 cents lower on Tuesday. Prices began to descend during the overnight session as traders took profits and squared positions ahead of tomorrow’s USDA supply/demand report. Corn prices tumbled as they were met with additional pressure from updated weather forecasts predicting timely rains for the Midwest region later in the week. Market losses were limited by current drought conditions in the Midwest and declining crop condition ratings.

Soybean futures closed 7 to 16 cents lower on Tuesday. Soybean futures traded both sides of the market today. Prices tumbled overnight into early morning on profit taking and position squaring ahead of USDA supply/demand report. Prices began to rebound at midday as traders anticipate lower yield forecasts due to weeks of excessive dry heat across the Midwest. However, late week forecasts for rain across the Midwest pulled prices back down to early morning levels.

Wheat futures closed 6 to 11 cents lower on Tuesday. Wheat futures closed lower as traders await tomorrow’s USDA supply/demand report. Profit taking and spillover pressure from the corn market were primary factors in the market’s decline today. However, losses were limited by further declines in spring wheat condition ratings and news that Russia, Ukraine, and Kazakhstan plan reduce their harvest forecasts and total grain output for 2012.

Cattle futures closed lower on Tuesday. Cattle futures ended the session 36 to 55 cents lower. Prices were pressured most of the day by lower boxed beef prices. Midday reports showed both choice and selects cuts lower. Prices were also affected by the downturn in the grain markets. Cash trade is anticipated to pick up later in the week, with prices called steady at best. Steady cash prices should lend support to the market.

Lean hog futures closed sharply lower on Tuesday. Hog futures closed decisively lower, taking back the majority of yesterday’s gains. Hog prices were primarily pressured by the pull back in the grain markets and lower cash prices. Declining pork cutout values, poor packer margins and weakening fundamentals were all bearish for prices as well.