Corn futures were slightly firmer on reports of lower yields on earlier harvesting and spillover support from the wheat pit.  Speculative buying was featured due to poor quality old-crop stocks left over from last year, while end users were securing for corn given the likelihood of tighter supplies.  Meanwhile, above normal temperatures have returned to the Corn Belt with temperatures exceeding the 90- degree mark in areas of the eastern Corn Belt. 

Wheat futures were sharply higher amid weather-related concerns in Russia, Australia, Argentina and Germany.   Dryness remains a problem for yields in Western Australia and Argentina, while the protracted rain activity in Germany has slowed harvest there while also threatening the quality of the crop.  Weekly export inspections for wheat were pegged at 25.5 million bushels, .9 million bushels less than the prior week.  News sources say that Morocco canceled its import duty for soft wheat due to the tightening of supplies. 

Soybean futures navigated on both sides of unchanged before settling lower on lack of buying interest and the implentation of grain/bean spreads.  Weekly soybean inspections for soybeans were at 7.17 million bushels.  Meanwhile, Indonesia is witnessing strong export demand for palm oil, but the country expects a smaller crop for 2011 tied to weather.  The government's weekly crop progress report showed beans at 64% good-to-excellent, unchanged from the previous week. 

Hog futures posted modest gains on ideas that last week's losses were a bit overdone.  Shorts covered some of their positions after noting that futures' discounts the cash market had become to wide after last week's decline.  More position squaring is expected tomorrow as traders balance their books for the end of the month.  Globex trading consisted of October/December, October/February and December/February spreading. 

Cattle futures came under some pressure due to weakness in the U.S. stock market and ideas that consumers may shun higher beef prices after Labor Day.  Traders were monitoring the market after noting it was becoming a bit overbought.  The August contract which will go off the board tomorrow afternoon showed that traders expect a lower cash market.  The USDA's midday boxed beef quote came in $.07 higher at $163.93.