Corn futures settled lower on Tuesday. The market was choppy, but closed lower amid profit-taking from recent gains and strength in the dollar. Traders are beginning to gear up for the August 12 crop report and current ideas are for USDA to raise its forecast for the 2009 crop. The warmer weather pattern that is expected to develop this week should help boost crop development and forecasts today have backed off on the length of the warm and dry spell. September ended 3 1/2 cents lower at $3.54 1/2 and December was 3 1/4 cents lower at $3.65 3/4.

Soybean futures closed mixed on Tuesday. Old-crop/new-crop spreads were adjusted following recent gains that were led by old-crop. New-crop was higher as weather premium is being added to the market. Forecasts call for a high pressure ridge to move over the Midwest, raising temperatures and limiting rain. However, new-crop gains were limited by forecasts today that backed off a little on the length of hot and dry spell. September closed 5 cents lower at $10.83 1/2 while November was 1 cent higher at $10.31 1/2.

Wheat futures traded lower on Tuesday. Profit-taking was sparked by strength in the dollar. Fundamentals remain generally bearish as export demand is sluggish and spring wheat yield potential is strong. Spring wheat crop condition ratings were 71% good to excellent last week, although that was down 3% from the previous week. CBOT Sep closed 7 cents lower at $5.42 1/4, KCBT Sep ended 6 cents lower at $5.73 and MGE Sep was 4 1/4 cents lower at $6.20.

Cattle futures closed lower on Tuesday. The market was pressured by the premium of futures to cash and spillover selling from the sharp losses in lean hog futures. Cash trade was disappointing the past couple of weeks. However, boxed beef prices have moved higher recently, with gains in choice cutouts of $1.01 on Monday and another 27 cents at midday. August ended 38 cents lower at $84.08 and October was 60 cents lower at $89.73.

Lean hog futures closed sharply lower on Tuesday. Weakness in the cash market and lower pork cutout values pushed prices lower. Technical selling helped extend losses, pushing futures to new contract lows. Some contracts for early 2010 were nearly down the $3 limit. August was 98 cents lower at $53.98, October was $1.93 lower at $50.13 and December closed $2.48 lower at $49.23.