By: NATHAN STUEDLE
GRAINS:
December corn closed up 2 3/4 cents and March corn was up 2 3/4 cents. January soybeans closed up 19 cents and March soybeans were up 16 1/2 cents. December KC wheat closed up 7 1/4 cents, December Chicago wheat was up 9 1/2 cents, December Minneapolis wheat was up 5 1/2 cents.
Corn and wheat markets were slow to start Monday but eventually found some strength to bounce off daily lows, even with technical pressure limiting daily gains. Meanwhile, soybean futures moved double-digits higher yet again to start the new week and month, aided Monday by a reversal in soybean oil futures after four straight sessions lower to close October. Outside markets were mostly quiet with energy markets higher following the weekend announcement from OPEC+ that production increases are expected to slow into 2026. The U.S. dollar firmed for a fourth consecutive day and is nearing key resistance.
LIVESTOCK:
The live cattle complex was back to trading higher early this week following Friday's slightly weaker close. More than anything, traders are reappraising the marketplace, hoping that more fundamental support will arise and that traders will be able to push prices above and beyond the market's 100-day moving average, which is a threshold traders aren't confident that the market can successfully move past right now even though prices are trading higher. New showlists appear to be mixed, higher in Nebraska/Colorado and Kansas, but lower in Texas. Last week, Southern live cattle traded at $235 to $235.50, which is $2.50 to $4.00 lower than the previous week's weighted average. Northern dressed cattle traded at mostly $358 to $360, which is $9.00 to $11.00 lower than the previous week's weighted average.
The feeder cattle complex led the cattle market's surge this morning as prices were trading mostly $5.00 higher into Monday's close. Following the slew of events that transpired over the last two to three weeks, which negatively impacted the market -- feeder cattle sales in the countryside have been noticeably lower, with prices often trading $20.00 to $50.00 lower compared to two or three weeks ago. Hopefully if the board begins to trade higher, feeder cattle sales will find more buyer support too.
Without anything substantial developing yet in the lean hog market's fundamentals, it's not surprising to see the contracts again trading lower. Before traders will likely support the contracts and help prices turn higher, they're going to need to see consumer demand improve.