Corn futures closed lower on Monday. Corn futures were not able to move above unchanged today despite strength in the wheat complex. Prices were mostly pressured by position squaring ahead the USDA’s October WASDE report. Pre report trade estimates peg the average production of the 2012 corn crop at 10.601 billion bushels, 126 million bushels below the September estimate. Prices were also weighted down by seasonal harvest pressure. December corn closed 6 ¼ cents lower.

Soybean futures closed lower on Monday. Market prices closed lower despite showing signs of recovery at midday. Traders are moving cautiously as the release of the October WASDE approaches. Pre report trade estimates forecast soybean production at 2.759 billion bushels with an average yield of 37.006. Other bearish factors for the market are seasonal harvest pressures and concern about the economic condition of China, the world’s largest buyer of soy products. All of these factors coupled with a higher dollar index pulled futures lower. November soybeans are trading 3 cents lower.

Wheat futures closed higher on Monday. Wheat futures closed higher although gains were trimmed by the higher dollar index and poor macroeconomic outlook as well as instability in the other grain markets. Today’s price support was tied primarily to adverse weather conditions in Australia and Russia. Australian wheat production is projected to decline by more than one million tonnes while Russian output is only expected to reach 70 million tonnes. Chicago wheat (Dec) closed 3 ½ cents higher, KCBOT close 4 cents higher, and MGE closed 5 cents higher.

Live cattle futures closed higher on Monday. Cattle futures closed mostly higher although several of the 2013 contracts closed lower. Futures were supported by spillover buying from the previous week’s trade. Midday box beef prices were reported higher, adding the strength of the nearby contracts. There were no reports of cash trade activity, but prices are called steady at best. October cattle closed 30 cents higher while December closed 20 cents higher.

Lean hog futures closed mostly higher on Monday. There is currently not much fresh news surrounding the hog market. Nearby contracts traded mostly higher throughout the session on short term supply concerns and higher cash price optimism, while deferred contracts posted moderate losses. Packer margins remain in the black although they have eased from last week’s estimates. Today’s hog slaughter is estimated at 435,000 head, 2,000 head lower than the previous week. October closed 15 cents higher while December closed 33 cents higher.