Corn futures closed sharply lower Tuesday. A break in China's stock market sparked a sharp decline in the U.S. stocks and that carried over into the grain markets. The market was technically weak following the key reversal yesterday and funds were big sellers today. May futures settled 14 1/4 cents lower at $4.24 1/4 while new-crop December was down 8 1/2 cents at $4.09 1/2.



Soybean futures closed strongly lower on Tuesday. The decline in China's stock market weighed on futures as traders were concerned that the Chinese government may put rules in place to slow their economy and negatively impact Chinese soybean purchases. Corn and wheat markets also fell, adding fuel to the fire sale. The soybean market was also technically overbought and ready for a correction. March ended 15 1/4 cents lower at $7.63 1/2 and November was 15 1/2 cents lower at $8.16 1/2.



Wheat futures ended lower on Tuesday. The market was pressured by a broad based selloff in the financial markets triggered by a steep break in China's stock market. Despite the sharp break, wheat futures rebounded from the morning lows to limit the chart damage. CBOT Mar was down 12 3/4 cents at $4.70 1/4. KCBT Mar was 10 1/4 cents lower at $4.97 1/2 while MGE Mar was down 11 1/2 cents at $5.02 1/2.



Cattle futures were mixed on the close Tuesday. The market posted a solid recovery from early lows to finish at the high end of the daily trading range. Weakness in the stock market pressured prices, but cattle futures were underpinned by the recent bullish Cattle on Feed report. April was 15 points higher at $97.45. June was down 15 points to close $95.70. March feeder cattle gained 70 points to close at $101.75.



Lean hog futures closed mixed on Tuesday. The market traded lower most of the session on spillover weakness from losses in the stock market amid concern about slowing economic growth in China. However, short-covering helped pull front end contracts higher amid firm cash market fundamentals. April ended 55 cents higher at $67.43 and June settled 35 cents higher at $77.45.