Corn futures followed wheat higher Monday. After declining in early trading, corn futures bounced modestly later in the day. The yellow grain seemed to follow wheat higher despite a general lack of news. Wire service sources cited position squaring and spread trading for the rise. December corn bounced 2.25 cents to $4.5325/bushel at Monday’s close, and May added 2.25 cents to $4.7425.
The soy complex moved lower to start the week. Soybeans and oil were weak in early Monday trading, while meal had risen slightly. The weekly Export Inspections report from the USDA seemed very supportive, since the stated figure, at 16.793 million bushels, easily topped expectations. Futures’ subsequent inability to rise substantially on the news seemingly sparked fresh selling. November soybeans closed 7.5 cents lower at $13.0775/bushel Monday afternoon, while October soyoil slid 0.12 cents to 41.97 cents/pound, and October soymeal skidded $2.3 to $411.1/ton.
Wheat futures rose in early-week trading. Chinese officials stated over the weekend that the spring weather that ruined a large portion of the country’s winter wheat crop will very likely cause it to boost its 2013/14 wheat imports substantially. Traders may also have been reacting to an industry report suggesting U.S. winter wheat plantings will decline substantially this fall, whereas 2014 spring wheat acreage could surge. December CBOT wheat climbed 7.25 cents to $6.535/bushel at its Monday settlement, while December KCBT wheat gained 5.0 cents to $6.9775, and December MGE futures declined 1.0 cent to $6.9875.
Cattle futures rallied in reaction to Friday afternoon events. The monthly USDA Cattle on Feed report was generally regarded as being bullish for deferred live cattle futures. Moreover, it apparently persuaded beef packers to raise their bids for fed cattle later in the afternoon, with cash prices rising $1-$2/cwt (cents/pound) from the week prior. October cattle futures had jumped 0.65 cents to 126.60 cents/pound by the end of the trading day, while December climbed 0.75 cents to 130.50. Meanwhile, October feeder cattle jumped 1.87 cents to 162.10 cents/pound and January leapt 1.32 cents to 161.72.
Hog futures seemed to follow cattle higher. Late-Friday pork reports indicated significant gains, which seemingly supported the swine market somewhat in early trading. However, the midday reports were less favorable. The fact that cattle and feeder futures were rising sharply probably sparked spillover buying in the swine pit. October hog futures settled 0.12 cents higher at 90.17 cents/pound Monday afternoon, while December lifted 0.35 cents to 86.42.