Corn futures were solidly lower on Monday. Corn prices fell to an eight-month low amid forecasts for improved crop weather in the Corn Belt this week, strength in the dollar and weakness in crude oil. Many areas in the Corn Belt are too wet and drier conditions and moderate temperatures are expected this week. July ended 6 3/4 cents lower at $3.33 3/4 and December was 7 3/4 cents lower at $3.52 3/4.
Soybean futures closed mixed on Monday. New-crop months rallied to the daily highs late in the session on ideas that crop ratings will decline in the Crop Progress report due out this afternoon. Heavy Midwest rainfall has caused further flooding and ponding issues and could prevent the tail end of planting. July ended 2 cents lower at $9.55 while November closed 6 1/2 cents higher at $9.18 1/2.
Wheat futures traded lower on Monday. The market fell to two-week lows on improved weather for harvest. Seasonal harvest is pressuring prices as global wheat supplies remain abundant. Strength in the dollar was also a bearish factor. The CME Group will raise the storage rates on deliverable wheat futures at the CBOT on July 18 from 3 cents to about 8 cents, which should help convergence between cash wheat prices and futures at expiration. CBOT July ended 6 3/4 cents lower at $4.49 1/2, KCBT July ended 4 3/4 cents lower at $4.79 and MGE July was 10 3/4 cents lower at $5.01 1/2.
Cattle futures closed slightly higher on Monday. Futures were supported by light fund buying as traders wait for direction from the cash market. Boxed beef prices have stabilized and packer margins are decent, raising ideas that cash trade may be able to hold steady. But packer demand will be lighter than normal as next week’s slaughter will be shortened by the Fourth of July holiday. August ended 30 cents higher at $89.68 and October was 23 cents higher at $91.30.
Lean hog futures were lower on Monday, led by losses in the front end contracts. Weakness in the cash market pressured prices. Deferreds were pulled lower as well by strength in the dollar. The market failed to find any support from the Hogs and Pigs report, which showed all hog and pigs as of June 1 down 4% from year-ago and the breeding herd down 3%. July closed $1.20 lower at $79.53 and August was $1.75 lower at $82.18.