Corn futures ended strongly lower on Tuesday. Forecasts for more rain in Argentina weighed heavily on the corn and soybean markets. The sharp decline in crude oil futures also pressured commodities. Sluggish export demand continues to be an underlying bearish factor as well. March ended 16 1/4 cents lower at $3.77 1/2 and May fell 16 1/4 cents lower at $3.88 1/2.



Soybean futures were sharply lower on Tuesday. The market was pressured by forecasts calling for improved chances of rain in Argentina next week. Crop prospects have been lowered, but some soybean production could be salvaged if rains develop over the next few weeks. Weakness in crude oil and gold also helped push commodity markets lower. CBOT March ended 33 cents lower at $9.76 and May was 33 cents lower at $9.83 3/4.



Wheat futures closed lower on Tuesday. The market was pressured by spillover selling from corn and soybeans as well as outside commodity markets such as crude oil and gold. However, losses were limited by weakness in the dollar index and bullish concerns about the dry conditions in the southern Plains. CBOT March ended 7 3/4 cents lower at $5.84 3/4, KCBT March was 7 cents lower at $6.14 3/4 and MGE March fell 3 cents to $6.62 1/2.



Cattle futures were strongly lower on Tuesday. The market was pressured by bearish economic news, lower boxed beef prices and spillover pressure from the lean hog pit. Futures are nearing contract lows with the February and April contracts near their previous lows set in early to mid December. February ended $1.08 lower at $81.28 and April was $1.20 lower at $84.40.



Lean hog futures continued to collapse on Tuesday with new lows set in 2009 contracts. Falling corn prices were one reason for the weaker hog futures, but most of the decline is due to poor demand. With weak cutout values, packers' margins remain very bad, and that will tend to reduce buying interest for hogs. February ended $2.25 lower at $55.75 and April was $2.08 lower at $60.70.