Corn futures closed lower on Monday. Fund selling and uncertainty about the European debt situation weighed on the market. Traders were also positioning ahead of the USDA report due out on Wednesday when new Crop Production and Supply/Demand reports will be released. Traders are expecting USDA will slightly lower the production estimate and will also lower the ending stock projection. December ended 2 1/2 cents lower at $6.53 1/4 and March was 1 cent lower at $6.65 1/4.
Soybean futures traded solidly lower on Monday. The market was pressured by strength in the dollar, uncertainty about the global economy and European debt, a large production estimate for Brazil and positioning ahead of the USDA reports due out this week. Grain analyst Celeres projected the 2012 Brazilian soybean crop at a record large 75.5 million tones. USDA will issue Crop Production and Supply/Demand reports on Wednesday. USDA is expected to raise their U.S. ending stocks estimate for soybeans. The crop production estimate is expected to be near the October estimate. November ended 20 1/4 cents lower at $11.92 1/4 and January was 19 1/4 cents lower at $12.01 3/4.
Wheat futures settled slightly higher on Monday. The markets were supported by positioning ahead of the USDA reports due out Wednesday morning. Traders are looking for USDA to lower its ending stocks estimate by around 20 million bushels from October. The rebound was also attributed to reports that Ukraine could lose up to 30% of its 2012 winter wheat crop due to drought. CBOT December closed 2 cents higher at $6.38 1/4, KCBT December was 6 1/2 cents higher at $7.24 1/2 and MGE December ended 4 1/2 cents higher at $9.28 1/4.
Cattle futures closed lower on Monday. The futures market was pressured by cash market uncertainty this week. Strength in the cash market last week helped push futures higher, but packer margins are poor and they may be hesitant to raise bids again. However, losses in the cash market are expected to be limited by tight supplies of market ready cattle. December is ended $1.10 lower at $123.40 and February was 63 cents lower at $125.28.
Lean hog futures traded lower on Monday. Declining pork prices and the weak tone in the cash market weighed on futures trade. Pork cutout values were down $1.04 on Friday, hitting the lowest level in five months. Seasonally large hog supplies and slow wholesale demand are pressuring pork prices. December closed $1.23 lower at $85.63 and February was $1.70 lower at $88.40.