Corn futures were sharply lower on Tuesday, with most contracts down the daily 30 cent limit. The market was pressured by the combination of a much larger than expected acreage estimate and favorable growing conditions across most of the Corn Belt. USDA estimated acreage at 87 million acres, up 2 million from March planting intentions and 3 million above the average pre-report trade estimate. September ended 30 cents lower at $3.54 1/2 and December was 30 cents lower at $3.67 1/4.

Soybean futures settled lower on Tuesday except for the July contract, which is in delivery. Generally favorable weather across the Midwest and spillover pressure from corn pulled prices lower. However, losses were limited by USDA's acreage estimate of 77.5 million acres, which is 800,000 below the average trade estimate. However, it is still up 1.5 million from March planting intentions. August was 2 3/4 cents lower at $11.19 1/4 and November was 2 1/2 cents lower at $9.81.

Wheat futures closed lower on Tuesday. Spillover pressure from corn and the bearish wheat acreage estimates from USDA this morning pressured prices. All wheat acreage was estimated at 59.8 million acres, up 1.6 million from trade expectations. Spring wheat acreage was pegged at 13.8 million acres, up from March planting intentions of 13.3 million and trade expectations for 13.1 million. CBOT Sep ended 17 cents lower at $5.40 3/4, KCBT Sep was 12 cents lower at $5.80 and MGE Sep was 22 3/4 cents lower at $6.33 3/4.

Cattle futures closed lower on Tuesday. The market was correcting from the sharp gains posted on Monday. Deferreds led the losses in part due to the weakness in corn. Front end losses were limited by ideas that the cash market will develop this week at $83, up $1 from last week. Boxed beef prices were higher on Monday, but choice cutouts were down 28 cents at midday Tuesday. August was 15 cents lower at $85.25 and October was 23 cents lower at $90.18.

Lean hog futures closed mostly higher on Tuesday. Higher cash hog prices and firm pork cutout values helped support front end futures. However, deferred contracts starting with the April 2010 contract were lower in part due to the sharp losses in corn. August gains $2.03 to close at $60.65 and October was 95 cents higher at $56.05.