Corn futures continued to ease lower on Tuesday. Favorable weather this month is expected to help boost yields. Despite heavy long liquidation, funds remain long and remain a threat for further selling. Futures did hold above support at contract lows today. September ended 1 3/4 cents lower at $2.19 1/4 and December closed 1 3/4 cents lower at $2.35 3/4.



Soybean futures ended slightly higher on Tuesday. The market was choppy in consolidation type trade. Gains were limited by weakness in corn and wheat and improved crop condition ratings last week. Weather forecasts for the Midwest remain nearly ideal for soybean production. September closed 1 cent higher at $5.49 1/4 and November was 1 cent higher at $5.62 1/4.



Wheat futures closed moderately lower Tuesday. Futures started lower following the bounce on Monday, but losses accelerated due to recent rain in the Plains and improved winter wheat prospects. Also, the trade is disappointed that Brazil has not purchased any U.S. wheat, as was speculated last week. CBOT Sep closed 6 cents lower at $3.59 3/4, KCBT Sep was 7 1/4 cents lower at $4.46 1/2, and MGE Sep fell 8 cents to $4.38 1/2.



Cattle futures were lower on Tuesday. Selling was linked to ideas that wholesale beef prices will decline through early September with Labor Day beef business now mostly completed. The large increase in the feedlot inventory reported Friday remains an underlying bearish factor. October fell 22 points to close at $91.42 while December was 40 points lower at $90.47. October feeder cattle were down 67 points to close at $117.27.



Lean hog futures ended lower on Tuesday. Profit-taking and consolidation trade following several days of hitting new contract highs weighed on futures. However, losses were limited by firm cash bids again today as packers are keeping aggressive slaughter schedules. October ended 5 cents lower at $67.00 and December closed 55 cents lower at $63.43.