Corn futures stabilized Tuesday after a steep decline the past two trading sessions. While a near-term bounce is likely over the next few days, longer-term we expect prices to decline into September as crop weather has been favorable for earfill. September ended unchanged at $2.22. December settled 1/4 cent higher at $2.38 1/2.



Soybean futures closed mixed on Tuesday. The market was consolidating after falling to the lowest level since February on Monday. Futures are having a hard time rallying given the favorable Midwest weather and improved crop condition ratings that are expected to raise the crop from USDA's August estimate. September closed 1/4 of a cent higher at $5.56 1/2 and November was unchanged at $5.69 1/4.



Wheat futures ended higher on Tuesday. The market managed a rebound rally following the recent steep decline due to bargain hunters and commercial buying. With spring wheat harvest at 69% complete, 35% ahead of normal, seasonal pressure will soon be easing. CBOT Sep gained 2 3/4 cents to close at $3.76 3/4. KCBT Sep climbed 5 3/4 cents to close at $4.49 3/4. MGE Sep was 2 3/4 cents higher at $4.53 1/4.



Cattle futures were mostly lower on the close Tuesday. The market was pressured by speculative long liquidation ahead of the USDA Cattle on Feed report due out Friday afternoon and ideas of large July placements. However, losses were limited by the higher trend in boxed beef cutout values and ideas of firm cash prices this week. August fell 57 points to close at $87.75 while October was 10 points lower at $91.70. August feeder cattle were down 42 points to close at $115.62.



Lean hog futures closed lower on Tuesday, led by weakness in the nearby October contract. Overbought conditions and some lower cash bids today pressured prices. There is concern that cash prices will slip further this week due to the poor packer margins and increased marketings given the moderate Midwest temperatures. October closed $1.35 lower at $63.15 and December ended 63 cents lower at $61.23.