Corn futures closed strongly higher on Monday. The market was supported by more hot and dry weather in the southern areas of the Corn Belt this week. Forecasts call for some relief later in the week, but crop potential has been hurt in some areas. USDA will update crop condition ratings on Monday afternoon. The market was able to rally despite weakness in the stock market and crude oil and strength in the dollar. September was 15 3/4 cents higher at $6.81 1/4 and December ended 17 cents higher at $6.85 3/4.
Soybean futures traded higher on Monday. Strength in corn and forecasts for some more stressful weather in the Midwest this week helped push soybean prices higher. However, gains were limited by forecasts for some relief from the hot and dry conditions later in the week. Gains were limited by weakness in crude oil and strength in the dollar. September closed 4 3/4 cents higher at $13.53 1/4 and November was 4 3/4 cents higher at $13.62.
Wheat futures settled higher on Monday. Futures trade was supported by spillover support in corn. Concern that hot and dry weather will limit spring wheat yields and that hot and dry weather in the southern Plains could hurt HRW wheat seeding if conditions persist into the fall are bullish factors. But trade was choppy and gains were limited on the day by weekly export inspections of only 16.2 million bushels, which was below trade expectations. CBOT September was 4 cents higher at $6.76 1/2, KCBT September ended 4 1/4 cents higher at $7.71 1/4 and MGE September closed 3 1/2 cents higher at $8.34 1/4.
Cattle futures were higher on Monday. Ideas of firm cash markets in the upcoming weeks and news that the debt deal will be completed helped encourage strength in the market. Strong export demand is a supportive factor, but domestic demand is a concern given the recent stretch of hot weather. Choice cutouts were down 45 cents at midday after declining $1.12 on Friday. August is 68 cents higher at $113.30 and October was 48 cents higher at $117.80.
Lean hog futures settled higher on Monday. Reports that lawmakers will approve a new debt deal, record high pork prices and strength in the cash market are helping to support the market. Pork cutouts have set new record high levels for the last four consecutive days. Much of the strength in the pork market is being attributed to China buying U.S. pork. August ended 33 cents lower at $103.10 and October was 60 cents higher at $93.00.