By: NATHAN STUEDLE
GRAINS:
September corn closed down 16 3/4 cents and December corn was down 16 1/4 cents. August soybeans closed down 24 cents and November soybeans were down 28 1/2 cents. September KC wheat closed down 8 1/2 cents, September Chicago wheat was down 8 1/4 cents, September Minneapolis wheat was down 0 cents.
Another Monday, another very ugly day for price action across grain futures as traders came back from the Independence Day break eager to add short positions to their portfolios. In fact, September corn futures haven't opened a trading week with a positive session since May 19, while August soybean futures have also traded lower in five out of the past six Monday sessions. Traders were clearly frustrated that the most recent wave of trade optimism following the agreement with Vietnam last week didn't amount to further ag-centric announcements from President Trump. Meanwhile, growing season weather is friendly and market seasonality is firmly against prices at this point. Ag markets were not alone in expressing tariff and trade-related nervousness, as stock indices fell on Monday as well ahead of the July 9th tariff deadline, although it is appearing likely the deadline will be extended in some cases.
LIVESTOCK:
With the equity markets off to a strong start this week, the live cattle complex also pushed an impressive rally to start Monday's trade off strong. This week it will be interesting to note how fed cash cattle prices trend, as packers need to stay engaged enough in the market to avoid becoming short bought for the weeks ahead, but it's unlikely that the market will trade better than steady, as packers do have some immediate supply around them. It will also be interesting to note how boxed beef prices will trade as seasonally it's expected that demand should soften. New showlists appear to be mixed, higher in Nebraska/Colorado, but lower in Kansas and Texas.
The feeder cattle complex was aggressively traded higher into Monday's noon hour as most of the contracts traded anywhere from $2.00 to $3.00 higher. From a cow-calf producer's standpoint, it's stress-relieving to see the market trade higher, as again this week Superior Livestock Auction is going to be hosting their Week in the Rockies Sale. It will again help set the tone for what feeder cattle prices could be later this fall.
The lean hog complex traded mostly higher into Monday's noon hour as traders are pleased to see the slight uptick in pork demand. Last week, demand was sluggish, and it gravely affected the futures complex. Wild price swings were the theme of this morning's cutout report as the belly was up $13.83, the picnic was up $7.15 and the rib was up $4.76.
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