Corn futures traded lower on Tuesday. Rainfall in Argentina and forecasts for more rain weighed on the soybean and corn markets today. The rain will ease stress on corn, but major stress has already trimmed yield potential as most of the crop has already pollinated. Concern about the global economy and softening corn demand also pushed prices lower. March ended 8 3/4 cents lower at $3.61 3/4 and May was 9 cents lower at $3.72 3/4.



Soybean futures closed lower on Tuesday. Fund selling was triggered by unexpected favorable rainfall in Argentina overnight and forecasts for more rain. While yield potential has been trimmed by dry weather, rain this month could still boost production as the crop is in the pod filling stage. Concern about the economy remains an underlying bearish factor despite strength in the stock market today. March closed 13 1/2 cents lower at $9.46 and May was 15 1/2 cents lower at $9.50 1/4.



Wheat futures were pressured on Tuesday by spillover weakness from soybeans and corn and continued concern about the global economic recession. However, losses were limited by weakness in the dollar index today and dry conditions in the southern Plains. Winter wheat crop condition ratings continue to decline. CBOT March closed 11 1/4 cents lower at $5.52 1/2, KCBT March ended 11 1/4 cents lower at $5.81 3/4 and MGE March was 3 1/2 cents lower at $6.43.



Cattle futures closed lower on Tuesday. Profit-taking from Monday's strong rally and concern about sluggish beef demand and the slowing economy weighed on prices. Beef prices have been trending lower as wholesalers try to move product. However, cattle owners are aiming for higher cash trade this week amid positive packer margins. April ended 70 cents lower at $86.13 and June was 60 cents lower at $83.75.



Lean hog futures settled mostly higher on Tuesday, recovering from weakness most of the session. Falling corn prices and generally weak cash hog bids put pressure on futures for much of the day, but short covering gradually boosted most contracts. April ended up 48 cents at $62.15 and June was 38 cents higher at $74.25.