Corn futures were strongly lower on Tuesday. Futures fell to the lowest level in seven months due to continued good growing conditions and increasing expectations for a bumper crop. Forecasts show no significant crop stress in the Corn Belt over the next couple of weeks. USDA pegged the crop at 71% good to excellent last week. However, there remains some concern about the crop being late as only 31% of the crop is silking versus the five-year average of 54%. September ended 11 3/4 cents lower at $3.11 1/2 and December closed 11 3/4 cents lower at $3.22.



Soybean futures posted strong losses on Tuesday. Forecasts for favorable crop weather over the next couple of weeks should boost yield prospects as the crop moves into the pod setting stage. Forecasts call for cooler than normal temperatures with chances of rain in the Midwest over the next couple of weeks. USDA pegged the crop at 67% good to excellent, up 1% from the previous week. However, there is some concern about the late crop as only 44% of soybeans are blooming versus the five-year average of 62%. August was 18 1/2 cents lower at $10.14 1/2 and November was 18 cents lower at $9.05.



Wheat futures closed lower on Tuesday. Spillover weakness from corn and soybeans and only light export demand weighed on wheat futures. An improving spring wheat crop and recently good harvest conditions are also bearish factors. Spring wheat condition ratings improved to 73% good to excellent, up 2% from the previous week. Winter wheat harvest jumped to 72% complete, down only 5% from the 5-year average. CBOT Sep ended 7 1/2 cents lower at $5.34 3/4, KCBT Sep was 5 1/4 cents lower at $5.65 3/4 and MGE Sep closed 13 cents lower at $6.00 1/4.



Cattle futures were lower on Tuesday. Technically overbought conditions and the steep losses in lean hog futures pressured the market. The futures market fell despite the sharp jump in boxed beef prices. At midday, boxed beef prices were up $1.58 for choice and $1.45 for select cuts after gains more than $2 on Monday. August closed 78 cents lower at $86.03 and October was $2.33 lower at $58.15.



Lean hog futures closed sharply lower on Tuesday. The easing of pork cutout values on Monday after hitting a near nine-month high last week and the premium of futures to the cash market pressured prices. There is concern that pork cutout values will not be able to hold onto to recent gains. Sell-stops were triggered to extend the losses. August ended $2.15 lower at $62.50 and October was $2.33 lower at $58.15.