Corn futures closed strongly higher on Monday. The market was supported by ideas that the sell-off last week was overdone, positioning ahead of the January 12 USDA report, strength in crude oil and continued concerns about dry weather in Argentina that is hurting corn production prospects. March ended 12 cents higher at $6.07 and May was 11 3/4 cents higher at $6.15 1/2.


 


Soybean futures traded higher on Monday. Positioning ahead of the USDA reports due out on Wednesday and dry weather forecasts for Argentina were supportive for the market. Pre-report trade estimates call for a decline in USDA’s ending stocks estimate. Strength in crude oil was also supportive for soybean oil and the soy complex. January ended 15 1/2 cents higher at $13.73 1/4 and March was 15 1/2 cents higher at $13.80 1/2.   


 


Wheat futures closed lower on Monday. The market was pressured by fund selling tied to index fund rebalancing. Futures were higher this morning on spillover support from corn and soybeans and news that Egypt bought some U.S. wheat in a weekend tender. CBOT March ended 6 3/4 cents lower at $7.67 1/4, KCBT March was 4 3/4 cents lower at $8.41 1/2 and MGE March closed 5 1/2 cents lower at $8.65 1/4.  


 


Cattle futures traded higher on Monday. The market was supported by fund buying and wintery weather in the Plains that is raising concern about delayed marketings. Cash trade is expected to be steady with the $105-$106 trade last week. Gains in futures were limited by poor packer margins and some recent weakness in boxed beef prices. February ended 58 cents higher at $106.95 and April was 90 cents higher at $111.45.


 

Lean hog futures were higher on Monday. Spillover support from the gains in cattle and higher pork cutout values on Friday helped push futures higher. There was also some bullish optimism that a pending resolution with Mexico over trucking will be resolved soon, which could lead to Mexico reducing tariffs on U.S. pork. February closed 28 cents higher at $79.70 and April was 60 cents higher at $84.65.