Corn futures closed higher on Monday. USDA’s Crop Production and Supply/Demand reports were neutral for corn. Outside markets and spillover weakness from soybeans pressured prices early in the session, but futures turned higher into the close. USDA pegged the corn crop at 12.497 billion bushels and ending stocks at 672 million, both near trade expectations. Ending stocks are now projected to be down 250 million from the estimated ending stocks level for 2010/11. December closed 9 cents higher at $7.45 1/2 and March was 9 1/4 cents higher at $7.58 1/2.    

Soybean futures traded strongly lower on Monday. USDA’s Crop Production and Supply/Demand reports were bearish for the market. The U.S. crop was raised to 3.085 billion bushels while traders were looking for a small decline. Instead of trimming ending stocks as expected, USDA raised the projection to 165 million bushels from 155 million last month. Outside market pressure also weighed on trade as the stock market was lower and the dollar index was higher. November closed 30 3/4 cents lower at $13.96 and January was 30 1/2 cents lower at $14.06 1/4. 

Wheat futures closed lower on Monday. USDA’s Supply/Demand report was bearish for the wheat market. U.S. ending stocks were raised to 761 million bushels from 671 million last month while traders were looking for the number to decline slightly. Global supply/demand revisions were also bearish. USDA raised their projection for world ending stocks to 194.6 million tonnes, up 5.7 million tonnes from last month while traders were looking for a small decline. Losses were limited late in the session by spillover support from corn. CBOT December was 2 1/2 cents lower at $7.27 1/4, KCBT December ended 7 1/4 cents lower at $8.03 and MGE December closed 5 3/4 cents lower at $9.01 1/2.

Cattle futures closed higher on Monday. Strength in the cash market last week and signs of improved beef demand helped trigger the short-covering gains. Midday cutout prices were up $1.66 for choice and $1.51 for select cutouts. Cash cattle traded at mostly $118 last week, up $4-$5 from the previous week. Tight supplies of market ready cattle pushed prices up strongly and showlists are expected to be tight this week again. October closed 95 cents higher at $119.40 and December was 48 cents higher at $118.73.

Lean hog futures were mostly lower on Monday. Front end futures were pressured by the 76 cent drop in pork cutouts on Friday and profit-taking from recent gains. However, losses were limited by steady cash prices today and strong pork exports. For the first 7 months of the year, U.S. exports were up 16% from year-ago. October closed 58 cents lower at $86.68 and December was 85 cents lower at $82.73.