The corn market seems to benefiting from spillover strength. Although seasonal pressure stemming from the ongoing harvest is probably weighing upon corn futures, prices rose modestly Monday morning. That very likely represented a response to strength spilling over from the soy complex. December corn futures edged up 1.5 cents to $4.3475/bushel by late Monday morning, while May added 1.75 cents to $4.5625.
Rumors of Chinese buying reportedly boosted the soy complex Monday. Although there has been no official news during the government shutdown, persistent rumors of Chinese buying are apparently pushing soybean and product prices to start the week. Ideas that last Friday’s drop was overdone may also be encouraging buyers. November soybeans bounced 10.5 cents to $12.7725/bushel in Monday morning trading, while December soyoil gained 0.13 cents to 40.41 cents/pound, and December soymeal climbed $5.5 to $408.9/ton.
Wheat futures proved surprisingly weak Monday morning. The wheat market moved generally lower in early-week trading, with wire service sources citing a lack of news on the export front. However, a private source boosted its estimate of forthcoming Western Australia production about 800,000 tonnes or 6.6% early this morning, which seemingly sparked the subsequent decline. December CBOT wheat was flat at $6.9225/bushel around midsession Monday, while December KCBT wheat sagged 0.75 cent to $7.595, and December MGE futures slumped 0.5 cent to $7.5425.
Friday evening cash strength boosted cattle futures today. CME traders were reportedly expecting country cattle to trade at steady-higher levels Friday evening. Indeed, fed cattle prices apparently surged to $128/cwt (cents/pound) later that day. Those bullish expectations apparently limited the futures response this morning. December cattle futures rallied 0.45 cents to 132.92 cents/pound by late Monday morning, while April advanced 0.22 to 135.50. Meanwhile, November feeder cattle gained 0.25 cents to 169.52 cents/pound, and January ran up 0.30 to 169.05.
The hog market moved mostly lower this morning. Growing anticipation of a fall surge in hog supplies may be exerting persistent downward pressure upon CME hog prices at this point. Mixed cash calls and rising cattle prices probably limited the pressure, but there are strong reasons behind the hog and pork complex’s history of major losses at this time of year. December hog futures dipped 0.17 cents to 86.32 cents/pound around lunchtime Monday, while April declined 0.25 cents to 89.60.