Corn futures closed lower on Tuesday. Follow-through selling from the weakness on Monday and generally favorable extended weather forecasts for crop development weighed on futures. Crop condition ratings last week slipped 2 points to 75% good to excellent, but it remains well above the ten-year average of 68%. Weakness in crude oil and strength in the dollar also pressured corn futures. July ended 3 1/2 cents lower at $3.51 1/2 and December was 2 3/4 cents lower at $3.72.
Soybean futures were mixed on Tuesday. Old-crop contracts were supported by tight soybean supplies and recent demand from China for the 2009/10 marketing year. But new-crop contracts were lower on generally favorable crop weather forecasts for July. USDA pegged soybean crop condition ratings by four points to 69% good to excellent, but that is still ahead of the ten-year average at 64%. July closed 2 1/4 cents higher at $9.65 1/2 while November ended 3 cents lower at $9.36.
Wheat futures traded lower on Tuesday. Strength in the dollar and follow-through technical selling from the losses on Monday weighed on futures. Seasonal harvest pressure and strong crop condition ratings were also bearish factors. Winter wheat condition ratings are 65% good to excellent compared to the ten-year average of 43% and spring wheat is 84% good to excellent versus the ten-year average of 70%. CBOT July was 1 1/4 cents lower at $4.60 3/4, KCBT July ended 5 3/4 cents lower at $4.94 and MGE July fell 5 1/2 cents to $5.34 3/4.
Cattle futures closed mixed on Tuesday. The market opened higher on firm beef prices and expectations for steady to higher cash cattle trade this week. But profit-taking developed to push most 2010 contracts lows amid the dollar turning higher and the stock market slipping lower. June was 18 cents higher due to the discount to cash, but August was 53 cents lower at $88.80.
Lean hog futures were mostly higher on Tuesday. The premium of the nearby contract to cash weighed on the July contract, but deferreds were higher with August hitting a six-week high. USDA will release a new monthly Cold Storage report this afternoon and it is expected to show reduced supplies of frozen pork. Steady cash trade and recent gains in pork cutout values were also supportive for futures trade. July ended 5 cents lower at $81.95 while October was 45 cents higher at $76.95.