Soybean losses depressed grain futures in Monday trading. Although talk of improved rainfall across the Midwest and the combination of equity index strength and U.S. dollar losses supported corn and wheat futures Monday, sizeable soybean losses apparently spilled over into the grain pits. December corn slipped 2.5 cents to $4.565/bushel Monday, while May lost 2.25 cents to $4.7775.
Rainy weather undercut the soy complex Monday. 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 33.25 cents to $13.4825/bushel at their Monday close, while October soyoil slid 0.21 cents to 42.13 cents/pound, and October soymeal sank $13.4 to $431.2/ton.
The wheat markets moved mostly lower to start the week. Weekend forecasts for improved precipitation across the nation’s midsection apparently persuaded traders that the winter wheat crop will get off to a good start during the days and weeks ahead. Growing soy complex losses reversed early wheat gains. December CBOT wheat closed 0.25 cent lower to $6.4125/bushel Monday afternoon, while December KCBT wheat declined 2.25 cents to $6.8975, and December MGE futures dropped 4.0 cents to $7.0175.
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 0.30 cents to 125.55 cents/pound as the CME pit session ended Monday, while December added 0.07 at 129.22. Meanwhile, October feeder cattle climbed 0.22 cents to 159.50 cents/pound, and January moved up 0.52 cents to 159.95.
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 CME strength. October hog futures jumped 1.42 cents to 92.12 cents/pound Monday afternoon, while December surged 1.22 cents to 88.47.