By: NATHAN STUEDLE
GRAINS:
March corn closed down 2 1/2 cents and May corn was down 2 1/4 cents. March soybeans closed down 4 cents and May soybeans were down 4 1/2 cents. March KC wheat closed down 9 1/2 cents, March Chicago wheat was down 10 1/4 cents, March Minneapolis wheat was down 6 3/4 cents.
U.S. row-crop futures were lower to begin the new week and month with wheat prices leading the way on a combination of technical pressure as well as outside market pressure from a firm U.S. dollar and sharply lower energy prices as U.S. and Iranian officials are set to hold nuclear talks in Turkey this upcoming Friday in a path of de-escalation of tensions which had driven crude oil prices to their highest level in four months. Direct fundamental news for corn, soy, and wheat markets was limited on Monday, but a quick start to soybean harvesting and safrinha corn planting in Brazil over the latter half of January is likely at least part of the cause of bearishness in the markets to begin February.
LIVESTOCK:
Live cattle futures surged higher Monday following the bullish news from last week's cattle inventory report. The focus on overall reduction in all cattle numbers and 2025 calvings decreasing by 2% has continued to spark renewed buying support through early trade. Although contracts backed away from initial highs, the focus on strong early week gains is likely to keep buyers active through the rest of the early week trade. Cash cattle markets look to be a typically quiet Monday with both buyers and sellers busy taking inventory and preparing for the week ahead. Bids and asking prices have yet to be established, and if the trend of the last couple of weeks continues, significant trade volume will be delayed until much later in the week. Boxed beef prices are Higher: choice up $2.14 ($367.70) and select up $2.35 ($364.29) with a movement of 32.80 loads (20.27 loads of choice, 4.93 loads of select, 3.40 loads of trim and 4.20 loads of ground beef).
Feeder cattle futures were leading the market higher Monday, as renewed focus on tight supplies continues to be seen through the entire cattle complex. The announcement in Friday's cattle inventory report of a 2% drop in calves born during 2025 continues to not only leave current buyers actively looking for cattle to fill yards, but it indicates that the trend will not be changing any time soon. It will be interesting to see how active buyer support remains over the next couple of days and weeks following this bullish report. Although the report gives actual numbers to the market supply tightness, the fact is that the market has already factored in much of the tightness, and this will not change the overall expectations of the beef market over the upcoming months.
Lean hog futures moved actively higher Monday as well. Although the same dynamics seen in the cattle market are not seen in the hog complex, the spill-over bullish support from surging cattle markets and active outside market buying activity has helped to push nearby contracts to triple-digit gains during morning trade. Spot month February futures are holding 80 to 90 cent gains through most of the morning, but the rest of nearby contracts held strong triple-digit gains near $2 per cwt into the closing bell. Traders continue to not only gain spill-over support from any beef market support during the year, but continued gains in financial markets are helping to keep hog market traders actively buying in initial February trade.