Corn futures closed lower on Monday. Ideas that crop conditions will show some improvement in this afternoon’s Crop Progress report and weakness in crude oil futures weighed on the market. Trade expectations are for crop conditions to be 68% good to excellent, which would be up slightly from last week but still below the average condition of the past five years. Losses were limited by USDA’s projections for tight ending stocks last week. July ended 4 1/2 cents lower at $7.82 1/2 and December was 8 cents lower at $7.04 1/2.
Soybean futures traded mixed on Monday, but closed lower. The recent improvement in planting weather, strong losses in crude oil and profit-taking all weighed on the market. USDA will update planting progress in the Crop Progress report on Monday afternoon. Drier weather last week likely helped boost planting progress. However, flooding along the Missouri River remains a bullish concern. July closed 4 1/2 cents at $13.82 3/4 and November was 5 cents lower at $13.76 3/4.
Wheat futures ended strongly lower on Monday. Improved crop weather in Europe and the Black Sea Regions weighed on wheat futures. Rainfall in northwest Europe and Ukraine are expected to boost crop prospects. Ideas that SRW usage in feed rations would increase have been bullish for the CBOT, but corn was lower today as well. Planting delays have been a bullish factor for the MGE, but profit-taking weighed on prices. USDA will update planting progress in the Crop Progress report on Monday afternoon. CBOT July closed 16 1/4 cents lower at $7.43, KCBT July was 17 cents lower at $8.51 and MGE July ended 14 3/4 cents lower at $9.85 1/4.
Cattle futures closed higher on Monday. The market bounced off of a lower open with support from futures discount to cash and ideas of steady to firm cash trade. Boxed beef prices have been declining recently, but packer margins remain favorable. Trade expectations are for cash trade to be steady to $1 higher from the $105-$106 trade last week. June ended 48 cents higher at $103.20 and August was 55 cents higher at $104.03.
Lean hog futures traded mostly higher on Monday. Higher cash markets and ideas of improving export demand supported most contracts today. Cash trade was reported at $1-$2 higher this morning and firm trade is expected to continue the next several days. News that South Korea will increase the amount of duty free pork imports should help U.S. export demand. Gains in deferred contracts were limited by some profit-taking from recent gains. June closed 78 cents higher at $92.48 and July was 30 cents higher at 93.53.