Corn futures closed lower on Monday. Corn futures remained on the defensive the majority of today’s trading session. Spillover pressure from tumbling soybean prices and rapidly advancing 2012/13 corn harvest kept prices on the defensive. Analysts anticipate corn harvest as of Sept. 23 at 41 percent complete, 15 percentage points higher than the previous week. Today’s, higher dollar index and lack of fundamental market support were bearish for prices as well. December corn closed 5 ¼ cents lower.
Soybean futures closed lower on Monday. Technical selling and harvest pressure plagued the soybean market throughout the day. Nearby contracts posted double digit losses although well above session lows. In addition to fundamental pressure, a dismal global economic sentiment pushed the dollar index higher sparking sell offs across risky assets. USDA’s crop progress report will be released this afternoon. The average of analysts’ estimates for this week soybean harvest is pegged at 20 percent complete, 10 percentage points higher than the previous week and 15 percentage points higher than the previous year. November soybeans closed 11 ¼ cents lower.
Wheat futures closed lower on Monday. Wheat futures tumbled despite ongoing concern pertaining to global supplies and potential restrictions on Russian wheat. News began to circulate late last week that Russia may be forced to limit grain exports if their domestic prices continue to rise as a means to limit inflation. However, fresh news surrounding the EU debt crisis pushed outside markets lower and the dollar index higher igniting sell offs across the risky assets and commodities. December wheat at CBOT closed 6 ¼ cents lower; KCBT closed 13 cents lower; and MGE closed 7 ¼ cents lower.
Live cattle futures closed lower on Monday. The market ended the session lower despite a bullish cattle on feed report. The report showed August placements down approximately 11 percent from the previous year which exceeded trade expectations of a 7 to 8 percent decline. This dramatic drop in placements is indicative of cattle supplies growing tighter. However, contracts turned lower on weakness in the outside markets and wholesale beef prices. October closed 23 cents lower while December closed 8 cents lower.
Lean hog futures closed higher on Monday. Futures contracts managed to rally to a higher close despite a shaky start during today’s trade. Initially, contracts were on the defensive following a particularly bearish cold storage report. The report showed August pork stocks 5.6% higher than the previous month and 31% higher than the previous year with this month’s ending stocks pegged as the highest ever on record for the month of August. In spite of this, hog futures were pulled higher by strength in the cash market. Cash market prices were reported up to $1 higher at some terminals. October closed 70 cents higher while December closed 38 cents higher.
Cotton futures closed lower on Monday. Cotton futures closed lower today along with the other commodities on global economic uncertainty along with overwhelmingly bearish fundamentals. It appears that Indian cotton production may be as large as the previous year due to late but timely monsoon rains, consequently this will add to an already large global supply of cotton. December closed 38 points lower.