Corn futures closed higher on Monday. The market was supported by outside markets, slow farmer selling and firm cash markets. Optimism that Europe will soon have a resolution for the euro zone debt crisis helped support the stock market and crude oil while the dollar index was lower. Farmer selling remains slow despite good harvest progress. In the Crop Progress report due out this afternoon, traders are looking for corn harvest to be in the 65%-70% range, up from 47% complete last week. December closed 1 3/4 cents higher at $6.51 and March was 2 1/4 cents higher at $6.62 1/4.
Soybean futures traded solidly higher on Monday. Futures were able to rebound from the losses posted last week. Outside markets helped support soybean futures as the stock market and crude oil were higher while the dollar index was lower as European leaders are working on a plan to resolve the euro zone debt crisis. In addition, China’s economic news was positive over the weekend with their manufacturing sector picking up in October after three months of contraction. November closed 14 1/2 cents higher at $12.26 3/4 and January was 14 1/2 cents higher at $12.35 1/4.
Wheat futures were mostly higher on Monday. Winter wheat futures were supported by short-covering and outside markets. The dollar index was lower and the stock market higher on optimism that European leaders will soon settle on a plan to resolve the euro zone debt crisis. But the MGE turned lower on profit-taking from the gains over the past couple of weeks. CBOT December closed 10 1/2 cents higher at $6.42 1/2, KCBT December was 12 cents higher at $7.35 while MGE December was 2 cents lower at $9.17 1/4.
Cattle futures closed higher on Monday. The market opened lower following the bearish Cattle on Feed report Friday afternoon. Cattle on Feed numbers were up 5% and September placements were unchanged from last year, both coming in above trade expectations. But futures turned higher on outside market support. Strength in the stock market and weakness in the dollar index helped trigger the rally. October ended $1.03 higher at $122.95 and December was 73 cents higher at $122.88.
Lean hog futures were mixed on Monday. The market was choppy as traders look for direction. There is concern that the cash market and pork prices could soon be topping. Pork prices have been held up by strong export demand, especially from China. Strength in the stock market and weakness in the dollar index provided some support for deferred contracts. December closed 83 cents lower at $88.83 while February was 15 cents higher at $92.18.