Corn futures closed lower on Tuesday. Renewed concerns about the global economy and the European debt problems pressured most commodity markets. Weakness in the stock market and strength in the dollar triggered heavy fund selling. However, further losses were limited by declining yield and crop production ideas. Crop condition ratings could further decline in the Crop Progress report this afternoon following the hot and mostly dry weather last week. December ended 4 1/4 cents lower at $7.55 3/4 and March was 4 cents lower at $7.68 1/4.
Soybean futures ended strongly lower on Tuesday. Weakness in the stock market and crude oil and the rally in the dollar index triggered the sell-off today. Concern about European debt problems is raising concern about the global and U.S. economies. Hot and dry weather last week further trimmed yield potential for crops in some areas, but cooler weather and some rainfall should limit crop stress this week. November closed 23 1/4 cents lower at $14.22 1/2 and January was 23 1/2 cents lower at $14.32 1/4.
Wheat futures closed solidly lower on Tuesday. Weakness in the stock market and strength in the dollar index due to renewed concern about the global economy weighed on wheat trade. Export demand for U.S. wheat remains sluggish. Russia, Ukraine and Kazakhstan have increased exports this year due to larger crops following the drought reduced yields last year. CBOT December ended 15 1/2 cents lower at $7.60, KCBT December was 14 1/2 cents lower at $8.65 1/2 and MGE December closed 11 cents lower at $9.31 3/4.
Cattle futures turned higher on Tuesday. Sharp losses in the stock market and strength in the dollar index initially weighed on futures. But short-covering and fund buying helped push prices higher. Ideas that Labor Day weekend beef clearance was strong and talk of firm cash trade this week were supportive fundamental factors. October ended $2.18 higher at $116.98 and December was $1.80 higher at $118.28.
Lean hog futures closed sharply lower on Tuesday. Fund long liquidation was triggered by outside market weakness. Economic concerns were bearish as the stock market was down strongly while the dollar index was higher. Pork cutouts were 75 cents lower on Friday and cash markets were trading down another $1-$2 today. October was $2.45 lower at $83.35 and December ended $1.85 lower at $81.25.