By: NATHAN STUEDLE
GRAIN:
March corn closed down 2 1/4 cents and May corn was down 2 cents. March soybeans closed down 6 cents and May soybeans were down 5 1/2 cents. March KC wheat closed down 11 cents, March Chicago wheat was down 7 cents, March Minneapolis wheat was down 5 1/4 cents.
Traders worked to remove weather related risk premium from U.S. wheat markets on Monday, with the severe cold event forecast to improve by midweek and decent snow cover across much of the U.S. leading to minimal crop damage thoughts for now. Meanwhile, corn and soybean markets also relaxed from firm closing prices on Friday, on a mix of negative influence from wheat as well as technical pressure. Outside markets were mixed with the story of the day being gold's record-breaking push over $5,000 per ounce for the first time ever on Monday. Investors continue to pour money into the commodity amid heightened geopolitical uncertainty, with markets now zeroing in on the possibility of another government shutdown with funding set to expire on Jan. 30.
LIVESTOCK:
Up until the last hour, the live cattle market was trading mostly mixed as traders seemed overwhelmed by the market's technical resistance. Lo and behold, as the noon hour neared, another gust of support seemed to overcome the live cattle complex. The market doesn't however seem confident in either direction as it's longing to see continued fundamental support to justify a higher trend. And it's not likely that enough support will develop until we see what happens in this week's fed cash cattle trade, which meant a teeter-totter like behavior today in the futures complex and the contracts finished softly lower. Still no trade has developed in the fed cash cattle complex and it's mostly likely that trade will be delayed until Thursday at the earliest and likely wait until Friday. It is assumed that prices will trend higher again this week as fed cash cattle supplies are tight, and packers can't afford to be short bought. Boxed beef prices are mixed: choice up $0.37 ($369.27) and select down $2.55 ($364.57) with a movement of 59 loads (42.36 loads of choice, 4.51 loads of select, zero loads of trim and 12.24 loads of ground beef).
The feeder cattle complex traded in the exact same manner as the live cattle complex is, as its market was taking more of a mixed approach into Tuesday's noon hour. More than anything, traders seem to want to keep the feeder cattle contracts aligned with the overall direction of the live cattle market. At the same time, traders know supplies are likely to remain thin in the near term and see that as a justification to keep the furthest deferred contracts trading higher, but the feeders likewise finished softly lower.
The lean hog complex traded fully higher into Tuesday's closing bell, although a couple of the nearby contacts are traded slightly lower for some of the session. More than anything, the market's uptick in consumer demand seems to be encouraging traders to continue to push the complex higher.