By: NATHAN STUEDLE
GRAINS:
September corn closed down 2 1/2 cents and December corn was down 3 3/4 cents. September soybeans closed up 5 3/4 cents and November soybeans were up 5 1/4 cents. September KC wheat closed down 1 3/4 cents, September Chicago wheat was unchanged, September Minneapolis wheat was up 3/4 cents.
Row-crop futures were quiet but mostly positive for the session Monday, except corn futures, which fell from early gains ahead of anticipated steady to higher crop ratings from the USDA later Monday afternoon. Corn and soybean markets in general find themselves in a similar situation compared to this point last year, with large yield ideas driving prices lower. Traders this time around will again have to decide whether to continue the selloff or display heightened caution this year following last year's yield falloff through fall. Outside markets were mixed with equities surging in a correction of Friday's bearish action, while energy markets continue to plummet from last week's monthly highs amid renewed tariff uncertainty specifically as it pertains to Russia and their oil partners, as well as an additional OPEC+ production increase for September announced on Sunday.
LIVESTOCK:
The live cattle complex is trading mixed as traders continue to believe in and see the robust support of the cattle market's fundamental position, but at the same time, traders also are aware of the elevated position of the futures complex and don't want to welcome any more unwanted volatility into the marketplace. After gapping higher at the open then faltering midday, the contracts ultimately finished softly higher.
Originally, the feeder cattle complex was traded higher, but as the day has progressed, traders seemed less confident, which consequently had the feeder cattle complex trading lower the second half of the day right until the closing bell when they rallied and finished modestly higher, just like the fat cattle. The spot September contract is less than $10.00 away from its resistance threshold, which is slightly limiting to traders, as they aren't certain whether they possess enough support to challenge that threshold.
The lean hog complex continued to grind higher as traders are pleased with the continued note of stronger pork demand and are appearing willing to challenge the market's nearby resistance threshold at $91.00 in the spot October contract. It will remain imperative that demand is undoubtedly supportive if traders are to be able to continue this rally, because without fundamental support, the market won't likely be able to trade much higher.