Corn futures closed lower on Wednesday. It appears that fund selling is beginning to emerge. With funds still heavily net long, downside risk remains. It also seems the trade has dialed up their expectations for 2007 crop acreage with ideas now that acreage could be up 9 to 10 million acres compared to expectations for a 7 to 8 million acre increase only a week or two ago. March settled 4 1/4 cents lower at $3.92 while new-crop December was 1/2 cent lower at $3.91.



Soybean futures closed higher on Wednesday. Front months made new contract highs as the soybean market is gaining slightly on corn. The market is technically overbought and with corn turning lower, gains in soybeans were trimmed from earlier in the session. March ended 2 1/4 cents higher at $7.41 and November was 1/4 of a cent higher at $7.91 1/2.



Wheat futures were mixed on the close Wednesday. Lower corn futures and technical selling in the wake of Tuesday's setback were negative factors. However, wheat prices have fallen enough to begin attracting increased commercial buying interest. CBOT Mar was 1 cent higher at $4.52. KCBT Mar was unchanged at $4.76 1/2 while MGE Mar was 3/4 of a cent higher at $4.86 1/4.



Cattle futures were higher on Wednesday. The market extended the strong rally, setting another round of highs in the April and June contracts. Strengthening cash prices and forecasts for a continuation of the stressful weather pattern in the Plains provided fundamental support. February gained 117 points to close at $93.65. The April contract was 27 points higher at $95.72. March feeder cattle were up 32 points at $99.35.



Lean hog futures closed lower on Wednesday. Front end futures were higher this morning, but profit-taking following the recent runup weighed on the market into the close. Cash markets were steady to firm again today and pork cutouts were up over $1 on Tuesday. However, the futures market had become technically overbought. April ended 53 cents lower at $66.80 and June was 48 cents lower at $76.78.