Corn futures rallied modestly Monday morning. 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. A forecast of substantially reduced Russian grain production may also be offering support. December corn futures gained 3.25 cents to $4.465 by late Monday morning, while May added 2.5 cents to $4.67/bushel.
Soybeans and oil remained weak in early Monday trading. Although today’s news seems nominally supportive of the soy complex, soybeans and oil proved surprisingly weak. Wire service sources cited technical and pragmatic factors for the early selling, but we suspect persistent reports of surprisingly good bean yields in the southern Corn Belt are weighing upon legume values. November soybeans sank 1.5 cents to $12.935/bushel just before lunchtime Monday, while December soyoil slid 0.39 cents to 39.85 cents/pound, but December soymeal rose $1.4 to $419.8/ton.
Wheat futures resumed their recent rally this morning. 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 apparently curtailed Russian plantings. The resulting drop in acreage points to a significantly reduced production figure next spring. December CBOT wheat surged 5.75 cents to $6.9275 bushel around midsession Monday, while December KCBT wheat climbed 6.75 cents to $7.57, and December MGE futures ran up 3.75 cents to $7.50.
First notice day may be worrying cattle traders today. Today is first notice day for October live cattle futures; those will be issued later in the day. 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. December cattle futures dipped 0.10 cents to 132.32 just before lunchtime Monday, while April dropped 0.35 cents to 135.10. Meanwhile, November feeder cattle tumbled 0.35 cents to 165.60 cents/pound, and January lost 0.40 cents to 165.55.
Hog futures were decidedly mixed Monday morning. 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 is probably supporting the nearby contracts at this point, but traders have to be concerned about the hog/pork complex’s history of substantial weakness at this time of year. December hog futures advanced 0.32 cents to 87.95 cents/pound in late Monday morning activity, while April lifted 0.32 cents to 90.17.