Corn futures ended lower on Tuesday. The sharp drop in soybeans spilled over into the corn market, erasing morning gains. The stronger dollar and weakness in the Dow and crude oil also weighed. Although crop conditions were reported slightly worse, the trade seemed to put greater stock in the favorable weather outlook and separate reports of good crops. September was 9 1/4 cents lower at $3.25 1/2 and December was 8 1/2 cents lower at $3.35 3/4.

Soybean futures finished strongly lower Tuesday, closing just above the limit losses that were hit late in the session. Futures were pressured most of the day by favorable weather outlooks. Acreage for 2009 is estimated at 77.5 million acres, and with very few threats to the crop currently we could see a large production figure this year. Falling crude oil prices added to losses. August was 65 cents lower at $10.53 1/2 and November was 68 cents lower at $8.95.

Wheat futures closed lower Tuesday. Spillover weakness from soybeans turned wheat prices negative midday. Winter wheat harvest has been lagging, but the outlook is good for this week. Forecasts for a possible drought in Russia grain regions this year provided underlying support. CBOT September was 6 3/4 cents lower at $5.12 1/2, KCBT September was 7 cents lower at $5.44 and MGE September was 5 3/4 cents lower at $6.06 3/4.

Cattle futures finished mostly lower Tuesday. Nearby contracts were lower, while the far-deferred contracts were higher. High unemployment in the U.S. has led to concerns about faltering beef demand. Slow exports and the stronger dollar further pressured futures. Cash cattle trade of $1 to $1.50 higher in the southern Plains limited losses in the nearby. Deferreds were supported by expectations for tightening supplies. August was 23 cents lower at $84.20 and October was 63 cents lower at $89.20.

Lean hog futures closed mixed Tuesday. Steady to $1 higher cash trade in the Midwest supported the nearby contracts. Exports are slow, but Russia's lifting of its export ban for four U.S. states should continue to support the market. Packer margins are negative, which is leading to a decrease in slaughter. August was 15 cents higher at $62.20 and October was 20 cents higher at $58.15.