By: NATHAN STUEDLE
St. Joseph Post
GRAINS:
May corn closed down 5 1/4 cents and December corn was down 1 1/2 cents. May soybeans closed down 1 cents and November soybeans were up 3 cents. May KC wheat closed down 12 3/4 cents, May Chicago wheat was down 8 1/4 cents, May Minneapolis wheat was down 10 1/4 cents.
The market kicked off a new week with mostly quiet trade, especially in corn and soybeans where traders are weighing the next leg of price direction following last week's strong price rally, likely waiting on U.S. planting and Brazilian safrinha weather to offer clues. Wheat markets in the meanwhile sank lower Monday, as prices are caught between last week's bearish USDA report and an uncertain new winter wheat crop scenario both in the U.S. and abroad. In outside markets, stock indices were cautiously higher to start the week, as tech companies got a boost from the weekend announcement from the Trump administration that smartphones and computers are exempt from tariffs for now, although officials have been clear that this is temporary and new tariffs on chips are on the table for the coming months. Meanwhile, the U.S. dollar continues to drop, working toward a fifth straight session lower and trading at the lowest level since April 2022.
LIVESTOCK:
The live cattle complex is continuing to rally following the boost of support the market received late last week.The spot June contract even broke above its 40-day moving average, which will be a threshold we need to monitor not only throughout the rest of the day, but likely through the week's end. No bids or asking prices have surfaced in the cash cattle market, but trade will likely develop earlier this week as the market will be closed on Friday for Good Friday ahead of Easter Sunday.
The live cattle complex may be trading higher but the feeder cattle contracts were trading in a bolder manner as traders push the feeder cattle contracts higher with ease. Traders are close to reaching the gap that was created when the tariff news broke, which could be a bit of a technical hurdle; but at this point traders don't seem concerned about the pressure that may be ahead for the market.
The lean hog complex also traded higher as it continues to see tremendous trader support which has actually helped the spot June contract fill in the gap made two weeks ago when news broke regarding tariffs. Monday's move has been solely a technical decision as there hasn't been enough time for traders to see what's developing fundamentally yet. As long as traders continue to see broad support from external factors such as the equity markets, this higher trend should be sustainable through the day's close.
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