Corn futures closed sharply lower on Monday. Strength in the dollar, sharply lower crude oil prices and favorable weather for corn planting weighed on futures. Warm and mostly dry weather last week is expected to have helped planting progress jump to around 19% complete as of Sunday, up from 3% the previous week. Forecasts call for favorable weather the first half of this week to be beneficial for planting. May ended 16 1/4 cents lower at $3.47 3/4 and July is 16 3/4 cents lower at $3.57 1/4.
Soybean futures were lower on Monday. Spillover selling from corn, strength in the dollar and weakness in crude oil pressured the soybean market. This morning USDA reported the cancellation of 165,000 tonnes of U.S. soybean for delivery in 2009/10, but also reported the sale of that amount for delivery in 2010/2011. May closed 8 1/2 cents lower at $9.76 3/4 and July was 8 1/2 cents lower at $9.86 1/2.
Wheat futures were down strongly on Monday. After the short-covering rally on Friday, the market turned lower today amid strength in the dollar and spillover pressure from corn and soybeans. Wheat fundamentals remain bearish. Favorable crop weather is expected to keep winter wheat condition ratings strong. CBOT May ended 22 3/4 cents lower at $4.67 3/4, KCBT May was 23 1/4 cents lower at $4.83 1/4 and MGE May closed 19 1/4 cents lower at $5.00 3/4.
Cattle futures were mostly lower on Monday. The front end April contract was up slightly on idea of firm cash trade this week and higher boxed beef prices at midday. But deferreds slipped lower on profit-taking. Outside financial markets were bearish as the dollar was higher and crude oil and equities lower. April ended 20 cents higher at $98.95 while June ended 15 cents lower at $94.50.
Lean hog futures closed mostly higher on Monday. Strength in the cash market and technical strength supported futures. Packer margins are good and they were raising bids amid tight supplies of market ready hogs. But gains were limited by some profit-taking and the premium of futures to the cash market. June closed 20 cents higher at $86.35 and July was 15 cents higher also at $86.35.