GRAINS:
May corn closed up 2 3/4 cents per bushel at $4.72 and July corn was up 2 3/4 cents at $4.79 1/2. May soybeans closed down 11 cents at $10.14 0/1 and July soybeans were down 10 1/2 cents at $10.28 1/4. May KC wheat closed up 13 3/4 cents at $5.79 1/2, May Chicago wheat was up 11 1/4 cents at $5.63 1/2 and May Minneapolis wheat was up 10 3/4 cents at $6.04 1/2.
While the corn market was mostly mixed to firm on the front end, soybeans and bean oil felt pressure from the plunge in canola futures after China decided to put a 100% tariff on Canadian canola oil and meal. The wheat market showed independent strength on the sixth consecutive lower close on the U.S. Dollar Index and dryness adversely impacting both U.S. Plains wheat and that of southern Russia. Ahead of Tuesday's March WASDE, few meaningful changes are expected in the U.S. balance sheet while all eyes will be on revisions to South American corn and soy production estimates. Pressure came also from outside financial markets as equities continued the downdraft on talk of recession.
LIVESTOCK:
It's exciting to see not only the live cattle contracts trading higher at Monday's start again, and maintaining through the whole session, but to see boxed beef prices higher at the beginning of the week. Traders were elated to see cash cattle prices venture somewhat higher last week, which is what really pushed the futures complex to jolt higher last Friday. And as long as fundamental support can remain plentiful in the market again this week -- continuing to trade higher shouldn't be an issue for the live cattle complex. If boxed beef prices show good interest all week, there's a chance that packers could be active in this week's market again. However, if demand is soft and prices fall flat, then packers won't likely show much interest in the cash market.
Continuing to mirror the live cattle market's trend, the feeder cattle contracts also traded higher heading into Monday's close. It will be interesting to see how traders handle the feeder cattle complex this week as the market is nearing resistance levels. If fundamental support is adequate on the live cattle market side of things (meaning boxed beef demand and strong fed cash cattle sales) then there's a chance that the market inches higher and pressures all time high price points, but without certainty from the live cattle complex, the market will face some headwinds.
Thankfully, the market's stronger close last week has added a little technical support early this week, which allowed the lean hog contracts to enjoy stronger prices ahead of Monday's close. And helping the market's cause as well is the fact that midday pork cutout values were up $1.81, and the carcass price is being driven evenly from the cuts.
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