Corn futures closed slightly above unchanged on Monday. Corn futures traded narrowly today, limited by the sharp losses in the other grains markets and harvest pressure. The market was underpinned by last week’s bullish stocks report where USDA pegged 2011/12 ending stocks significantly lower than trade expectations. USDA also announced export sales of 100,000 tonnes of corn to Mexico for split delivery during 2012/13 (33,333 tonnes) and 2013/14 (66,667 tonnes). December futures closed ¼ cents higher.

Soybean futures closed sharply lower on Monday. The rapid advancement of soybean harvest and plantings in South America weighed heavily on futures as traders expect supplies to increase as a result. Soybean futures were also pulled lower by strong losses in the soyoil market. Soyoil futures plummeted approximately 2.8% to close with triple digit losses. Soyoil prices closed down $1.46-$1.47 while soymeal prices closed $11 to $12 lower. November soybeans closed 39 cents lower.

Wheat futures closed moderately lower on Monday. Wheat futures declined on forecasts for favorable rains across the U.S. Plains and timely rains in Australia this past weekend. Prices dropped over 2% across all exchanges despite USDA’s price friendly stocks report last week. Another bearish factor for the market today was the sharp declines in the soy complex which sparked rounds of technical selling. Export inspections were good (on the high end of trade expectations) but were overshadowed by sharp declines in prices. December wheat closed 19 ¾ cents lower at CBOT; 20 ½ cents lower at KCBT; and 21 cents lower at MGE.

Live cattle futures closed higher on Monday. Cattle futures extending midday gains to close impressively higher despite weakness in the wholesale beef market. Friday’s closing wholesale beef prices collapsed with choice down $3.06 at $188.98 while select closed $2.95 cents lower at $177.85. However, midday prices were slightly better with choice unchanged at $188.98 and select up 12 cents at $177.97. Nonetheless, expectations are for cash trade to rebound, with calls for steady to higher prices. October closed 95 cents higher while December closed up $1.43.

Lean hog futures closed higher on Monday. The market was underpinned by strength in the cash market and higher pork cutout values. Pork cutout values were reported up 21 cents at $80.49. The market hasn’t seen this high of a price since the first week of September.The market was also supported by rising corn prices especially the 2013 contracts. Both June and July contracts are within 40 to 80 cents of topping $100 per cwt. October closed 40 cents higher while December closed $1.38 higher. The majority of the 2013 contracts also closed over $1 higher today.