Corn futures ended lower on Tuesday. The market gave back much of the gains posted on Monday. The large net long position held by the funds continues to hang over the market. Futures appear to be settling into a trading range for the time being. May closed 4 3/4 cents lower at $4.22 and December was 2 1/4 cents lower at $4.06 1/2.



Soybean futures settled lower again on Tuesday. Record large U.S. stocks and rising production estimates for Brazil and Argentina have kept prices on the defensive. However, losses were limited by the stabilizing stock market in China and higher U.S. stock prices today. May ended 2 3/4 cents lower at $7.47 3/4 and November fell 1 1/4 cents to $7.86 1/2.



Wheat futures were lower on the close Tuesday. The market gave back the gains posted on Monday. Favorable crop conditions ratings reported Monday afternoon by several key wheat states weighed on the market. Kansas reported that 64 percent of the crop is in good to excellent condition, up a couple points from last month. CBOT May was down 7 3/4 cents at $4.73. KCBT May was 6 3/4 cents lower at $5.01 1/4 while MGE May fell 7 cents to close at $5.08 1/2.



Cattle futures closed higher on Tuesday. Strengthening cutout values and expectations for seasonally stronger beef demand continue to underpin the market. There was a report today that a few cattle traded in Texas at $95. April closed up 25 points at $97.60 and June was 30 points higher at $95.72. March feeder cattle fell 40 points to close at $103.35.



Lean hog futures closed higher on Tuesday despite more weakness in cash markets. Trading was light and characterized by bull spreading. Cash markets were mostly lower again on Tuesday as we continue to work through the backlog of hogs caused by last week's storm. However, the downturn in cash prices isn't expected to last too long. April ended 25 cents higher at $97.60 and June ended 10 cents higher at $75.58.