Corn futures closed lower on Tuesday. Futures hit the lowest level in two months today on speculative selling following the Commitment of Traders report released Monday afternoon that showed a larger than expected long position by the funds. March ended 9 cents lower at $3.54 1/2 and December ended 6 3/4 cents lower at $3.58.
Soybean futures posted double digit losses on Tuesday. The larger-than-expected index fund long position in yesterday's Commitment of Traders report led to speculative long liquidation. The continued general weakness in commodities and continued favorable weather in South America is also contributed to weakness. March closed 12 3/4 cents lower at $6.64 1/2 and November fell 10 3/4 cents to $7.14 1/4.

Wheat futures ended lower on Tuesday. The Commitment of Traders report contributed to speculative long liquidation in the grains. That report showed the index funds holding larger long positions than had been anticipated. In addition, forecasts for another winter storm in the Plains was viewed as mildly negative. CBOT Mar was 11 cents lower at $4.53. KCBT Mar was down 7 1/2 cents at $4.71 1/2 while MGE Mar fell 8 3/4 cents to close at $4.73 3/4.

Cattle futures closed lower on Tuesday. After the February and April contracts rallied to test chart resistance at recent contract highs, futures turned lower. A report that Cargill plans to curtail slaughter at its plants Wednesday weighed heavily on the market. That news reinforced concerns about a potential backlog in marketings. February fell 95 points to close at $92.30. April was 67 points lower at $93.77. January feeder cattle fell 67 points to close at $98.20.

Lean hog futures closed lower on Tuesday, pressured by fund selling and weak cash prices. With cash prices continuing to decline there is little support for futures prices. Cash hog prices dropped below $56 per cwt on Tuesday with few signs of bottoming out. February fell 55 cents to $59.75. June hogs fell 18 cents and closed at $71.80.