Corn futures closed lower on Wednesday. The market traded relatively quiet most of the session as the markets took a break and traders secured profits after an impressive two day rally earlier this week. Unfavorable news from scouts on the ProFarmer tour concerning production and yield estimates have helped to limit market losses, but prices will continue to see support from the long term bullish outlook of the market and the need to ration demand. News across the wire this morning reports analysts’ estimate 2012 corn yield down at 121.5 bushels per acre (a 16 year low) with production at 10.5 billion bushels (an 8 year low). September corn traded 3 1/4 cents lower at $8.28 while December corn closed at $8.33 down 5 1/2 cents from the previous session’s close.

Soybean futures closed lower on Wednesday. Prices closed well off of morning lows but were slightly pressured by non commercial liquidation and profit taking. Undoubtedly the market outlook remains strongly bullish and will continue to support prices. The trade is concerned that global stocks could become very close to reaching a zero balance as the U.S. harvest ends and before the South American harvest begins. News across the wire this morning reports analysts’ estimate 2012 soybean yield at 36.6 bushels per acre (an 8 year low) with production at 2.713 billion bushels (an 4 year low). September soybeans closed 5 1/2 cents lower at $17.49 while December closed down 3 cents at $17.29.

Wheat futures closed lower on Wednesday. Due to lack of fresh news, wheat prices followed the direction of the other grain crops. News that Canada is set to harvest 27 million tonnes of wheat also pressured prices today. Longer term fundamentals may prove to be supportive for the market as wheat reductions continued to roll in concerning Russia and the Black Sea Region, however, the market is trading on the short term outlook at the present moment. If the dollar index continues to pull back and global wheat estimated continue to fall, buyers may find cause for renewed buying interest in U.S. wheat. September wheat at CBOT closed down 4 cents at $8.97; KCBT closed 3 cents lower at $9.06; MGE closed 3 cents lower at $9.42.

Live cattle futures closed mostly lower on Wednesday. The front month August contract was the only contract to trade higher today as traders cover their short positions after CME reported no new deliveries on the contract yesterday. However, deferred contracts remained under pressure as traders believe the surge in boxed beef prices have topped out and demand for beef products is easing ahead of the Labor Day weekend. USDA’s Cold Storage report is set to be released today and analyst estimated beef stocks higher at 478 million pounds versus 470.8 million pounds in June. Cash trade remains undeveloped but prices are anticipated to be steady to higher. October cattle closed 15 cents lower at $124.50 while December closed 13 cents lower at $128.05.

Lean hog futures closed sharply lower on Wednesday. October/December contracts dropped more than 3 percent today, hitting a 1 ½ year low, as hog slaughter and hog weights pick up steam. Hog slaughter is reported at 8,000 head higher today than the previous week and 2,000 head higher than the previous day. The continued increases in hog production have traders concerned that cash hog and wholesale pork prices will continue to see pressure in the short term, thereby causing futures to decline sharply. On another note, USDA is set to release its Cold Storage report this afternoon and analysts’ are estimating July cold storage pork inventory at 561.8 million pounds, 29.9 million pounds lower. The October contract closed down $2.63 at $73.18 while December closed $2.23 lower at $70.85.