Chicago agricultural commodities kept dropping Tuesday.

The most active corn contract for March delivery lost 6 cents, or 0.85 percent, to close at 6.9625 dollars per bushel. March wheat fell 9.5 cents, or 1.28 percent, to settle at 7.32 dollars per bushel. March soybeans shed 10.75 cents, or 0.75 percent, to close at 14.2075 dollars per bushel.

Active profit taking dampened corn prices.

Meanwhile, rainfall is expected in key growing areas in Argentina this weekend and possibly in the next week. And weather conditions continued to improve in the U.S. eastern Corn Belt area.

An early projection put the acreage of corn planted for 2013/14 crop year at 96-99 million acres, adding a bearish touch to corn market.

Losses in wheat and soybean markets also dragged down corn prices. Furthermore, there are rumors that some European commodity funds were liquidating positions.

Improved weather forecasts over the next two weeks for the U.S. eastern Corn Belt area as well as for the U.S. west forced down wheat prices. Many traders doubt whether the current USDA wheat export estimates of 1.05 billion bushels can be actualized given current sales and shipment pace.

U.S. wheat traders are looking forward to the Iraq tender this weekend. Algeria issued a tender overnight for 55,000 tonnes, but France has been the major wheat supplier in this region.

Soybean traded lower on favorable weather forecast for Argentina and Brazil. While some market analysts began to adjust down Argentine soybean production due to the dry conditions in most of January, some others suggest the losses could be offset by record large Brazilian supplies.

The tight U.S. balance sheet remains a positive long-term fundamental factor, but soybean trade is being influenced by what looks like a large supply of soybeans in South America in the short term.

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