Corn futures closed sharply lower on Monday. After moving to the plus side early, corn futures came under increased selling pressure from soybeans and wheat. Technically based selling in corn accelerated as the December contract fell below a well-defined chart support at $7.32, driving that contact to a six week low. On the supportive side, weekend rainfall in Argentina will add to planting delays which are prompting some private forecasters to dial down production estimates. December corn futures were down 21 3/4 cents lower at $7.17.
Soybean futures were sharply lower on the close Monday. January futures plunged 46 1/4 cents and closed at $14.05. New-crop November of 2013 fell 34 cents at $12.85 3/4. December soybean meal stumbled to a loss of $18.30 at $431.40. Soyoil lost 38 points to close at 47.39 cents for December. Trading funds were estimated to have net sold 8,000 bean contracts. The selling is in direct response to Friday’s monthly crop report which found USDA revising upwards its soybean production forecast by 111 million bushels, the largest November revision on record. Weather patterns showed short-term improvement in South America.
Wheat prices closed sharply lower Monday on a hangover from the bearish revisions to the U.S. and global ending stocks outlook released by USDA on Friday. Prior to that report, traders thought there would be a minor increase to the U.S. stocks outlook and yet another reduction in projected global wheat ending stocks. Instead USDA raised the U.S. stocks forecast by 50 million bu. and reversed months of declining global ending stocks forecasts by raising that figure by more than one million metric tonnes. Also pressuring wheat today were very welcome rains in much of the southern Plains where crop condition ratings for the newly-seeded 2013 crop have been at the lowest levels since 1986. Normally there would be another weekly crop condition report today, but that has been delayed until tomorrow due to the Veterans Day holiday today. At the close, CBOT December wheat was down 28 ¾ cents at $8.57 ¾; KCBT December down 31 ¾ cents at $8.90 ½; MGE December down 25 ¼ cents at $9.33 ¼.
Live cattle futures were steady to lower on Monday. Cattle slaughter last week was down 2.3 percent from the previous week, but was fractionally higher than a year ago at 631,000 head and beef production was 3.7% from a year ago. Beef prices were lower on Friday, but bounced back partially on Monday. While futures drifted lower, the December contract continues to hold above chart support levels at $124 and $124.50. December cattle futures settled 40 cents lower at $125.35.
Lean hog futures closed mixed on Monday. Demand was a little soft with some packers shutdown for the holiday. Pork production edged up fractionally last week from both the previous week and a year ago at 482.8 million pounds. However, after the sharp rally in recent days, lean hog futures are technically overbought and due for a correction lower. December CME lean hogs settled 42 cents lower at $80.32.