Corn futures closed 32 to 34 cents higher on Monday. Corn prices closed higher on continued weather worries. New crop corn traded limit up this morning fueled by fears that the current drought in the Midwest will force to USDA to cut yield estimates. USDA is set to release crop condition ratings this afternoon and analysts are expecting to see a 5 percentage point decline in the good/excellent ratio for corn.
Soybean futures closed 39 to 45 cents higher on Monday. Midwest drought concerns drove soybean prices to record high amounts today. The excessive heat over the last few weeks is believed to have further damaged new crop beans, boosting prices. The September soybean contract hit $16.79 1/2, the all time highest spot soybean price on continuous charts. Soymeal futures also hit a record high at $490/ton. USDA is set to release its crop progress report today, and analysts are expecting to see a 5 percentage point decline in the soybean good/excellent condition rating.
Wheat futures closed 19 to 28 cents higher on Monday. Wheat futures were pulled higher by strength in the corn and soybean markets, which posted moderate gains today on dry weather conditions. Prices saw additional support as hot, dry conditions across the U.S. Plains continue to stress the spring wheat crop, which resulted in lower crop condition ratings last week. Major floods in the Black Sea Region, particularly Russia, boosted prices as well.
Cattle futures closed lower on Monday. The market traded lower most of the session despite last week’s higher cash prices and firm export demand. The down turn in prices can be attributed to lower boxed beef prices and waning beef demand as the summer progresses. However, deferred contracts should see additional support from rising grain prices.
Lean hog futures closed higher on Monday. Hog futures closed sharply higher on Monday with nearby contracts supported by cash premiums to futures prices. The deferred contracts displayed the strongest showing with October through 2013 contracts posting gains up to $2 per cwt. due to raising grain prices. Trade is the cash market was sluggish and generally lower, but did not affect the today’s price rallies.