Corn futures were down sharply Tuesday on a round of profit-taking following yesterday's gains. While prices turned lower today, we don't believe the rally has peaked. Harvest movement might stall the rally a bit, but we expect good buying support under the market. December futures closed 14 cents lower at $2.75 1/2. March settled 14 1/2 cents lower at $2.88.

Soybean futures ended lower on Tuesday. Profit-taking weighed on prices after hitting two-month highs yesterday. Harvest pressure and estimates of a near record crop are bearish fundamentals for the market. USDA will update supply/demand numbers on Thursday and ending stocks are expected to be record large. November fell 12 cents to $5.62 1/2 and January ended 12 3/4 cents lower at $5.76 1/2.

Wheat futures were mostly lower Tuesday but CBOT Dec and Mar finished higher. The market ran into heavy profit taking following the recent surge higher. Chicago and Kansas City futures set another round of new contract highs at the opening before caving in to speculative long liquidation. The market has pretty well exhausted the bullish enthusiasm from declining Australian production forecasts. CBOT Dec was 7 cents higher at $5.01. KCBT Dec was down 18 1/2 cents at $5.13 1/4. MGE Dec was 7 3/4 cents lower at $5.02.

Cattle futures closed lower on Tuesday. The market remained under pressure with technical selling weighing on the market after yesterday's steep decline. Packer margins are deeply in the red and until wholesale beef prices improve substantially, live cattle prices are likely to struggle. October was down 92 points at $88.27. December was 80 points lower at $87.02. October feeder cattle were down 65 points at $110.10.

Lean hog futures closed mostly higher on Tuesday, but well off the day's highs. Bull spreading was noted due in part to December's sizable discount to the settlement index. However, profit taking limited gains once prices failed to break through overhead resistance. October was 45 cents higher at $64.80 and December was 8 cents higher at $59.25.