By: NATHAN STUEDLE
GRAINS:
July corn closed down 10 3/4 cents and December corn was down 11 1/2 cents. August soybeans closed down 17 1/4 cents and November soybeans were down 17 1/4 cents. September KC wheat closed down 4 3/4 cents, September Chicago wheat was down 10 cents, September Minneapolis wheat was down 4 1/2 cents.
U.S. row-crop futures fell Monday with double-digit losses for both corn and soybean markets. Despite a heatwave across the U.S. Corn Belt this week, traders see adequate rainfall through the first half of July (combined with soil moisture build up in June) to support the development of the corn crop into the crucial pollination period. Both corn and soybean markets will face long-term technical tests as nearby old-crop futures challenge the $4.00 and $11.00 levels, respectively. Outside markets were quiet to begin the week with WTI crude oil continuing to hold support above the chart gap left at the onset of the war in the Middle East in late February, trading higher Monday after a weekend of renewed conflict between the U.S. and Iran, though both sides agreed to halt the aggression on Sunday.
LIVESTOCK:
The live cattle contracts were trading lower into Monday's close, as the market simply isn't seeing the level of trader support it needs in order to trade higher. And while yes, midday boxed beef prices were higher, the market could be short of the technical support it needs this week as traders may not participate as aggressively this week given that it's a big holiday week, and given that the contracts are up against resistance levels. Last week, Northern dressed cattle traded at mostly $408 to $410, which is $1.00 to $3.00 higher than the previous week's weighted average, and Southern live cattle traded at mostly $258, which is $1.00 lower than the previous week's weighted average.
Without much ambition or excitement being seen in the live cattle complex, the feeder cattle contracts were consequently trading lower at the week's start. And do note that with the markets being closed on Friday for the Fourth of July holiday, trader interest and participation in the complex this week could be minimal.
The lean hog complex was also trading mostly lower into Monday's closing bell, as traders don't want to get ahead of themselves and be too bullish if fundamental support isn't going to be sizeable. But it is worth noting that the morning's carcass price was higher, but the big push is stemming from the huge rally in the belly, which was up $12.16 this morning.