By: NATHAN STUEDLE
GRAINS:
July corn closed down 9 cents and December corn was down 11 1/4 cents. July soybeans closed down 1 1/4 cents and November soybeans were down 6 1/4 cents. July KC wheat closed down 11 3/4 cents, July Chicago wheat was down 12 3/4 cents, July Minneapolis wheat was down 12 3/4 cents.
Corn and wheat markets turned sharply lower to begin the new week, as weather forecasts remain mostly friendly to crops in the immediate outlook. Soybean futures were also lower, with increased losses in deferred contract months as traders await the next round of crop conditions from USDA this afternoon, which are expected to show steady to improved ratings across the major U.S. crops. In outside markets on Monday, equities were on edge as the market awaits details on the trade summit between the U.S. and China in London, which is expected to be a two-day event. Energy markets were mostly positive to start the week as NYMEX crude oil futures attempt to solidify their late-week breakout but will likely face technical pressure from here.
LIVESTOCK:
Following last week's rally, the live cattle complex was able to maintain a mostly higher position through Monday's session and finished in the green. With ample fundamental support encouraging the complex to trade higher, traders have been more than willing and receptive to the market's strong fundamentals which has pushed the contracts beyond resistance thresholds. At some point, packers will get enough supply bought up to dampen the fed cash cattle market's fire-like rally, but until then, it's anyone's guess at this point where the market's top could be. New showlists appear to be mixed, higher in Texas, somewhat higher in Nebraska/Colorado, but lower in Kansas. Last week Southern live cattle traded at mostly $230 to $232, which is $8.00 to $10.00 higher than the previous week's weighted average, and Northern dressed cattle traded at mostly $380 which is $13.00 higher than the previous week's weighted average.
The feeder cattle contracts traded higher, as the market is closely following the live cattle market's direction. And given the wild support in which the market's fundamentals (fed cash cattle trade, boxed beef prices, feeder cattle buyer demand) have recently seen, there's more than enough encouragement in the market to justify trader support. But the question that seems to be on everyone's mind and that frankly won't be answered until time plays the clock out is: where the top at?
The lean hog complex is trading mostly higher into Monday's closing bell as traders are hopeful that consumer demand will continue to help fuel the market's rally into this week. Pork cutout values were down slightly this morning, but that's mainly because of a $4.46 drop in the ham. Otherwise, the cuts were trading mostly higher.
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