Corn futures were lower Tuesday in response to USDA's crop production estimate. The crop was estimated at 11.114 billion bushels, up 138 million bushels from the August estimate and about 125 million above pre-release trade estimates. However, the impact was more than offset by an increase in consumption. Increased exports helped trim 2006-07 ending stocks compared to the August report. December ended 5 3/4 cents lower at $2.37 3/4. March futures settled 4 3/4 cents lower at $2.52 1/2.

Soybean futures ended lower on Tuesday. New contract lows were posted again today. Although the USDA Production and Supply/Demand reports were relatively neutral and the market jumped a bit at the open, the rest of the trading session prices headed lower in sympathy with corn and wheat. November ended 6 cents lower at $5.38 1/2 and January closed 5 3/4 cents lower at $5.52.

Wheat futures ended strongly lower on Tuesday. The market opened slightly lower on spillover from a larger than expected corn production estimate, rallied to morning highs, but failed to attract follow through buying interest at the higher levels and then turned lower. Prices broke sharply into early afternoon before losses were trimmed just a bit at the close. CBOT Dec fell 10 1/2 cents to close at $4.02 1/2. KCBT December was 8 cents lower at $4.70. MGE Dec was down 10 cents at $4.49 1/4.

Cattle futures closed slightly higher on Tuesday. The market hung onto small gains after a quiet session. USDA trimmed the 2006 beef production estimate by 100 million pounds in the Supply/Demand report this morning and boosted projected exports by 20 million pounds. October contract was up 25 points at $92.10. December was 12 points higher at $91.87. October feeder cattle gained 20 points to close at $118.05.

Lean hog futures continued to post good gains on Tuesday due to fund buying and higher cash bids. Despite the high slaughter levels hog futures continue to be very strong. Technical signals are positive and the strength in the cash market is supportive. October ended 50 cents higher at $67.50. December was up 33 cents at $65.23.