Corn futures ended slightly lower on spillover pressure from the neighboring grain market along with outside influences.  The market retained some of its risk premium due to yield uncertainties and more confirmation from harvests.  This morning, the USDA announced a sale of 100,000 tonnes of corn to an unknown destination, while Libya was seeking 30,000 tonnes of the grain.  The sale was for delivery during the 2010/11 marketing year. 

Wheat futures drifted lower on the triggering of sell stops and ideas that rain will improve crop prospects in Australia and the U.S.  Some parts of Australia could see light rain coverage this week, although Western Australia is still in need of more moisture.  The area represents about 40% of national production.  Rabobank, a major agricultural lender, said on Tuesday it pegged Australia's wheat production at 22 million tonnes while exports are projected at 15 million tonnes. 

Soybean futures lost Tuesday on borrowed weakness from crude oil futures and speculative fund selling which consisted of 4,000 contracts.  Traders found selling opportunities given the potential for a sizable crop as the USDA left its crop rating unchanged at 64% in the good-to-excellent category.  Moreover, sources in South America say that Brazil could see a larger crop, which is estimated at above 70 million tonnes.  The USDA had estimated the country's crop at 65 million tonnes.

Hog futures finished slightly higher credited to the recovery in the financial and metals markets.  Buyers were also emboldened by futures' steep discount to the cash market, while the triggering of buy stops helped to keep prices afloat. Participants implemented spreads which involved buying December and exiting October.  Traders expect slaughter to increase in coming weeks which kept a lid on prices. 

Live cattle futures were lower on aggressive long liquidation and lack of fresh buying interest.  Traders were discouraged by packer bids that came in at $97 compared to offers of $102 yesterday.  The market found some support from the improvement in the stock market and spillover support from the pork pit.  Traders also kept an eye on futures' discount to the cash market and the lack of new deliveries.