Corn futures closed lower on Monday. Fund long liquidation continued to weigh on futures amid concern about the global economy. July futures broken below some technical support, which helped extend the losses. Weather forecasts for the next couple of weeks are non-threatening for the crop as they do not show any high pressure ridge becoming entrenched over the Corn Belt. July ended 9 1/4 cents lower at $6.60 3/4 and December was 5 1/4 cents lower at $6.26 3/4.
Soybean futures were higher at the close Monday. The market rebounded from losses this morning on short-covering following recent weakness. USDA reported this morning the sales of 120,000 tonnes of U.S. Soybeans to China for 2011/12 delivery. However, gains were limited by weather forecasts that remain non-threatening for the crop. USDA will update crop condition ratings this afternoon and ratings are expected to be near week-ago levels. July closed 9 1/2 cents higher at $13.29 3/4 and November was 5 3/4 cents higher at $13.15.
Wheat futures traded strongly lower on Monday. Continued fund long liquidation, seasonal harvest pressure and concern about the global economy weighed on the market. Reports last week that Russia had sold some wheat at a discounted rate was bearish as it undercut U.S. Prices on the global export market. Winter wheat harvest is running at a strong pace and some HRW yields are better than expected. CBOT July closed 13 cents lower at $6.22 3/4, KCBT July was 20 cents lower at $7.28 1/2 and MGE July ended 20 1/4 cents lower at $8.05 3/4.
Cattle futures closed strongly lower on Monday. Profit-taking weighed on the futures market after prices had reach the highest level in nearly two months on Friday. Wholesale beef sales are expected to slow this week as purchases for the July Fourth weekend have already been completed. Cash trade was $3-$4 higher last week at mostly $112, but tightened packer margins and the smaller slaughter schedule next week could limit cash bids this week. June ended $1.55 lower at $111.50 and August was $2.15 lower at $111.38.
Lean hog futures were sharply lower on Monday. Futures were pressured by weakness in the cash market and pork cutouts values along with the bearish reaction to the Hogs and Pigs report. The report showed a slight year over year increase in both market hog and breeding hog inventories. Cash hog markets were trading $1-$2 lower today as most packers have needs covered for the week. July closed $1.85 lower at $94.15 and August was $2.85 lower at $92.35.