The corn market moved steadily lower Tuesday. Grain and soybean futures recently surged in response to deteriorating weather conditions. However, the corn crop may not suffer all that badly in forecast conditions, especially if midday predictions for improved rainfall prove accurate. Widespread profit-taking hit the market after than news. September corn fell 16.0 cents to $4.9975/bushel at Tuesday’s settlement, while December sank 14.25 cents to $4.8625.

Soybeans couldn’t sustain their early advance. Soybean futures resumed their recent rally Tuesday morning. This wasn’t terribly surprising, because extreme heat and dryness at this time could sharply curtail bean production later this year. However, midsession forecasts indicating improved rainfall prospects sparked as dramatic reversal. September soybeans closed 13.75 cents lower at $14.15/bushel Tuesday afternoon, while November beans dove 19.0 to $13.705. September soyoil lost 0.38 cents to 44.06 cents/pound, while September soymeal skidded $2.7 to $455.9/ton.

Wheat futures held up surprisingly well Tuesday. News that India’s Parliament had approved a proposal to supply cheap grain for 800 million of its 1.1 billion citizens seemed to support wheat futures Tuesday. That would seemingly explain futures’ firmness in the face of sizeable corn and soybean losses. September CBOT wheat slid 4.0 cents to $6.5075/bushel in late Tuesday trading, while September KCBT wheat edged 1.0 cent lower to $7.0725, and September MGE futures added 0.25 cent to $7.295.

Cattle futures were hurt by equity losses Tuesday. The cattle market has performed well lately, but traders apparently expect slippage this week, since grocers have probably met their needs for Labor Day. Moreover, economic weakness implied by today’s stock market drop may show up as reduced red meat demand and lower prices later this year. October cattle futures declined 0.42 cents to 126.72 cents/pound at Tuesday’s close, and December sagged 0.40 cents to 129.77. September feeder cattle futures bounced 1.15 cents to 155.27 cents/pound in response to today’s grain and soy losses, while November added 1.10 to 157.85.

Strong wholesale quotes boosted hog futures Tuesday. The large discounts built into CME hog futures are supporting the nearby contracts, but Tuesday’s advance very likely reflected the big midday jump posted by pork prices. Persistent cash weakness and trader suspicions that the wholesale rise would prove temporary probably limited the rally. October hog futures gained 0.55 cents to 86.57 cents/pound in late Tuesday trading, while December lifted 0.47 cents to 83.55.