Ag markets posted an impressive showing Monday

Crop futures rallied strongly Monday. The corn and bean markets ended last week badly, but they staged an impressive comeback today. Forecasts for continuing Midwest rainfall this week, thereby implying growing harvest delays, and U.S. dollar weakness very likely encouraged bulls. December corn futures surged 12.0 cents to $3.46/bushel at their Monday close, while May added 11.75 cents to $3.675.

Dollar weakness and rainfall also seemed to boost the soy complex. Today's sizeable losses in the U.S. dollar may encourage international buying of U.S. products. Meanwhile, rainy weather could significantly delay the bean harvest, thereby reducing yields and quality. November soybean futures jumped 22.75 cents to $9.4525/bushel in late Monday action, while December soyoil rallied 0.60 cents to 33.04 cents/pound, and December soymeal gained 6.9 at $317.9.

The wheat markets followed corn and beans higher. Friday's WASDE report proved surprisingly supportive, which sparked a late-week bounce. The gains persisted Monday despite a general lack of news. Today's U.S. dollar weakness is probably encouraging bulls watching corn and soybeans post big rebounds. December CBOT settled 6.75 cents higher at $5.0325/bushel Monday, while December KC wheat climbed 6.5 cents to $5.8425/bushel, and December MWE wheat moved up 5.5 to $5.5875.

Cattle traders may be expecting seasonal strength. Cattle futures ended last week badly despite Friday news of fresh cash strength. Futures rebounded sharply to start this week's trading, which may have marked a belated reaction to the cash strength. But expectations continued cash and beef strength during autumn probably played a bigger role. December live cattle futures leapt 1.60 cents to 166.50 cents/pound as Monday's pit session ended, while April futures advanced 0.72 to 165.90. Meanwhile, November feeder futures surged 0.95 cents to 240.15 cents/pound and January feeders jumped 1.02 to 234.12.

Hog futures seemingly reflected guarded short-term optimism. Despite the hog and pork complex's history of weakness during the fourth quarter, CME traders pushed deferred futures higher to start the week. That may reflect recent pork strength, as well as the discounts already built into most contracts. December hogs ended Monday having risen 0.22 cents to 94.62 cents/pound, while April lifted 0.350 to 91.85.


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