Corn futures were solidly higher on Monday. The market was supported by technical buying and a firm cash market. Weakness in the dollar index was also a supportive factor. There was also report of traders beginning to position for the USDA Supply/Demand report due out on Friday. May closed 5 3/4 cents higher at $6.60 3/4 and December was 1 1/4 cents higher at $5.71 1/4.
Soybean futures closed lower on Monday. The market fell today, halting the 10-day rally. Profit-taking and a soybean acreage forecast that came in above USDA’s recent estimate were bearish factors. However, fundamentals remain bullish on strong export demand for U.S. soybeans and declining soybean production estimates for South America. May ended 8 cents lower at $13.25 and November was 9 cents lower at $12.89.
Wheat futures were mixed on Monday. Winter wheat markets were pressured by profit-taking and positioning ahead of the March Supply/Demand report due out Friday morning. Record global wheat production and rising stocks remain bearish factors for wheat. However, the MGE was higher on concern that high priced soybeans may encourage some acreage to be switched out of spring wheat. CBOT May closed 3 cents lower at $6.67 3/4, KCBT May was 5 cents lower at $7.05 1/2 and MGE May ended 3 1/4 cents higher at $8.34 3/4.
Cattle futures closed solidly lower on Monday. The market was pressured by profit-taking and concern that record high wholesale beef prices will hurt demand. With cash prices at record high levels and packer margins still negative, current cash prices seem unsustainable. April closed $1.55 lower at $128.40 and June was $1.38 lower at $125.90.
Lean hog futures traded lower on Monday. Concern about soft demand for pork and negative packer margins are weighing on futures. Although pork prices were up slightly on Friday, last week pork cutouts values fell to a three-week low. Cash hog prices were mostly steady today, but bids could fall later this week. Most packers have needs covered fairly well for this week and processing margins remain poor. April ended $1.00 lower at $89.43 and June was $1.00 lower at $98.50.