Corn futures closed sharply higher on Monday. Limit gains in wheat supported prices with corn futures hitting limit gains during the session. Despite active harvest, the market is bulled up on expectations for strong demand for corn due to ethanol usage, exports and feed demand. December ended 18 1/2 cents higher at $2.89 1/2 and March was 18 1/2 cents higher at $3.02 1/2.



Soybean futures closed strongly higher on Monday. The big jump in wheat provided spillover support. Harvest pressure after a favorable weekend of weather kept prices from going higher, but was not strong enough to weigh on the market despite ideas of a large crop. November ended 10 1/2 cents higher at $5.74 1/2 and January was 11 1/2 cents higher at $5.89 1/4.



Wheat futures were sharply higher Monday. New life of contract highs were set at the CBOT except new-crop months which are still below last week's highs. The strong gains also pushed the KCBT and MGE to limit gains. The market was supported by prospects for a much smaller wheat crop in Australia and sharply higher wheat futures in Europe. Gains were extended by massive short covering amid margin call pressure. CBOT Dec was up the 30 cent daily limit at $4.94. KCBT Dec was also up the 30 cent limit at $5.31 3/4. MGE December wheat was 30 cents higher at $5.09 3/4.



Cattle futures were sharply lower Monday. Futures gapped down and the December contract fell to the lowest level since late July. A sluggish tone in the wholesale beef market and last Friday's lower cash prices weighed heavily on the market. Packer margins are deeply in the red, prompting ideas that slaughter schedules will be reduced this week. October fell 167 points to close at $89.20. December was 152 points lower at $87.82. October feeder cattle were down 227 points at $110.75.



Lean hog futures declined on Monday, fueled by weakness in the cash market. There are signs that packers are cutting back on slaughter this week and lowering cash bids in an effort to improve profitability. With futures declining, some traders decided to jump on board what appears to be a negative chart pattern. October closed 23 cents lower at $64.35 and December fell 45 cents to $59.18.