Soybean losses depressed grain futures in early Monday action. Although talk of a frost threat in the upper Midwest and the combination of equity index strength and U.S. dollar losses supported corn and wheat futures early this morning, accelerating soybean losses apparently spilled over into the grain pits. December corn slipped 2.75 cents to $4.5625/bushel Monday morning, while May lost 2.5 cents to $4.77.
Rainy weather undercut the soy complex Monday morning. Although they’re arriving rather late, modest weekend rains are now expected to be followed by persistent Corn Belt precipitation over the next two weeks. Given the size of the gains posted by the legume markets over the past six weeks, the resulting drop is not terribly surprising. November soybeans fell 16.0 cents to $13.655/bushel in late Monday morning trading, while October soyoil slid 0.18 cents to 42.16 cents/pound, and October soymeal dipped $5.9 to $438.7/ton.
The wheat markets were mixed slightly this morning. Forecasts with frost potential during the next few days may have spurred the early wheat rise. That is, while the U.S. crop has largely been harvested, Canada’s large crop may be somewhat more vulnerable to damage. However, growing soy complex losses reversed most of the early wheat gains. December CBOT wheat edged up 1.75 cents to $6.4325/bushel around lunchtime Monday, whereas December KCBT wheat declined 0.25 cent to $6.9175, and December MGE futures skidded 1.5 cents to $7.0425.
Mixed views about the short-term outlook seemingly had a similar impact upon cattle futures. CME cattle traders have apparently been confused by the recent lack of cash and wholesale price strength. That would seemingly explain last week’s sideways-to-lower trading, as well as today’s mixed action. October cattle futures rallied 0.25 cents to 125.50 cents/pound around midsession Monday, while December was sagged 0.10 at 129.05. Meanwhile, October feeder cattle climbed 0.32 cents to 159.60 cents/pound, and January moved up 0.67 cents to 160.10.
Surprisingly tight hog supplies are apparently boosting the hog and pork complex. Last week’s slaughter proved stunningly small, thereby appearing to confirm ideas that current swine supplies are smaller than anticipated. Morning reports of sizeable country gains probably exaggerated early CME strength. October hog futures jumped 0.82 cent to 91.52 cents/pound in late Monday morning action, while December surged 0.60 cents to 87.85.