Corn futures ended higher on Wednesday, once again posting new contract highs. Early gains were tied to the sharp jump in wheat. Gains were trimmed into the close as wheat prices turned lower and soybeans pulled back after good early gains. December closed 2 3/4 cents higher at $3.27. March settled 3 1/2 cents higher at $3.39 1/4.

Soybean futures settled lower on Wednesday after trading higher most of the session. Futures rallied to 10-month highs on spillover strength in wheat and corn, but turned lower on a round of profit when those markets backed down. Soybean traders are closely watching corn and wheat due to acreage implications next spring. November ended 1 1/2 cents lower at $6.22 and January was 1 1/2 cents lower at $6.35 1/2.

Wheat futures ended lower on Wednesday. The market opened strongly higher on news that another Australian wheat production estimate was lowered. KC futures reached new contract highs this morning, but the gains did not hold and the market turned lower. The reversal action and weak close are likely to bring further technical selling into the market. CBOT Dec was 5 3/4 cents lower at $5.16 3/4. KCBT Dec was 9 3/4 cents lower at $5.35 1/2. MGE Dec was 9 3/4 cents lower at $5.13 1/2.

Cattle futures closed higher on Wednesday. The early rally in corn caused live cattle futures to sell off as feeder cattle plunged to the lowest level since last spring. However, short covering emerged to push prices higher again as corn prices eased from the daily highs. December was up 22 points at $88.57. February was 27 points higher at $91.22. November feeder cattle fell 37 points to close at $104.45.

Lean hog futures closed strongly higher on Wednesday. New highs were set in the April through October 2007 contracts. Short-covering was triggered by talk of firm cash trade through the end of the week. With futures already at a discount to cash, fund buying triggered buy-stops that extended the rally. December was $1.63 higher at $61.48 and February was $1.20 higher at $65.40.