By: NATHAN STUEDLE
St. Joseph Post
GRAINS:
July corn closed down 14 3/4 cents and December corn was down 7 1/4 cents. July soybeans closed down 12 1/2 cents and November soybeans were down 8 1/4 cents. July KC wheat closed down 8 1/2 cents, July Chicago wheat was down 11 3/4 cents, July Minneapolis wheat was down 1 1/2 cents.
Markets were weaker in general to kick off the new week as U.S. crop markets are pressured by the upcoming dry stretch of weather which is being seen as minimizing any planting delay risks that may have been emerging after rainfall through the latter part of April, particularly in the Eastern Corn Belt. Outside markets were mixed with equities inching higher in a very muted session, while the big story as it pertains directly to agricultural interests is the continued plunge in crude oil prices, with NYMEX futures hitting a fresh low for the move Monday morning following the OPEC+ decision to increase production by 411,000 barrels per day in June.
LIVESTOCK:
The live cattle complex has aggressively stepped into the new week as the market is traded upwards at $1.00 to $2.00 higher in all contracts. Just when you think the futures complex has found a top -- traders seem to catch a second wind and run the contracts higher. Of course, at these levels, risk is always looming, but the name of the game Monday was bold bullishness. Last week Southern live cattle traded at mostly $218, which is $5.00 to $6.00 higher than the previous week's weighted average, and Northern dressed cattle traded at mostly $350, which is $8.00 higher than the previous week's weighted average.
With the added encouragement from the live cattle complex, the feeder cattle contracts leapt back into action as they traded mostly $2.00 higher into Monday's closing bell. So long as fundamental support remains plentiful again this week, there's a chance the feeder cattle complex will be able to at least maintain its position, if not trade a little higher as buyers will likely stay engaged in the feeder cattle market as turn-out season to grass is just a month away.
The lean hog complex traded mixed to kick the week off as traders want to see more fundamental support before they do any more advancing on the futures front. But if pork cutout values find some stability in terms of consistent price and daily support, then there's a chance traders may be willing to trade the contracts higher.
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