Ag markets broadly mixed at Monday's close
Corn futures rallied moderately Monday. Talk that rainy weekend weather prevented corn harvest progress, as well as ideas that another storm will hit the Corn Belt later this week, seemed to support corn futures in Monday morning trading. An unofficial report of large weekly export inspections may also have offered support. December corn futures gained 6.0 cents to $4.4925 by late Monday afternoon, while May added 5.25 cents to $4.6975/bushel.
Soybeans and meal bounced from early lows today. The soy complex suffered early-week pressure, which seemingly stemmed from talk of surprisingly large yields in the early harvest. However, an unofficial result for weekly export inspections easily topped week-ago levels, thereby seeming to spark the late rebound. November soybeans closed up 1.5 cents to $12.965/bushel at Monday’s close, while December soyoil slid 0.34 cents to 39.90 cents/pound, and December soymeal rose $2.3 to $420.7/ton.
Wheat futures resumed their recent rally Monday. Indications of strong demand continue supporting wheat futures. Prices rose rather strongly to start the week in apparent response to news that excessive rainfall has curtailed Russian plantings. The resulting drop in acreage points to a significantly reduced production figure next spring. December CBOT wheat surged 7.75 cents to $6.9475 bushel at Monday’s settlement, while December KCBT wheat climbed 6.25 cents to $7.565, and December MGE futures ran up 4.0 cents to $7.5025.
First notice day may have worried cattle traders Monday. Today is first notice day for October live cattle futures; those will be issued this afternoon. At this point, a significant number of notices seem likely to be posted, since fed cattle traded in the $125-$126/cwt (cents/pound) range late last week, whereas the October future began the day trading over 128 cents/pound. Deferred futures at much larger premiums also look rather vulnerable. December cattle futures settled 0.12 cents lower at 132.30 Monday afternoon, while April dropped 0.32 cents to 135.12. Meanwhile, November feeder cattle tumbled 0.47 cents to 165.47 cents/pound, and January lost 0.17 cents to 165.77.
Hog futures traded mixed to higher Monday. The lack of USDA news is almost surely limiting activity in the hog pit and creating considerable uncertainty in the process. Talk of steady cash prices and tight supplies probably supported the deferred contracts, but traders appeared concerned about the hog/pork complex’s history of substantial weakness at this time of year and sold October a bit lower as a result. December hog futures advanced 0.25 cents to 87.87 cents/pound at their Monday settlement, while April lifted 0.22 cents to 90.55.
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