By: NATHAN STUEDLE
GRAINS:
September corn closed up 4 3/4 cents and December corn was up 5 1/2 cents. August soybeans closed up 21 1/2 cents and November soybeans were up 23 1/4 cents. September KC wheat closed down 8 1/2 cents, September Chicago wheat was down 8 3/4 cents, September Minneapolis wheat was up 1/2 cents.
Corn and soybean futures gapped higher to begin the new week for the second straight week with traders having ample bullish points to choose from to justify a sustained buying spree. First and foremost is the two-week weather forecast with above-average temperatures still prevalent other than a few-day reprieve toward the end of the business week. Rainfall over this period also looks less than ideal in many areas for corn pollination especially but also for pod setting and early filling in soybeans as well. Geopolitical situations lean very bullish as well with the U.S. carrying out strikes against Iran for nine consecutive days and little news of a restart in negotiations, though regional mediators are reportedly scrambling to do so. In the Black Sea, the Kerch Strait into the Sea of Azov remains closed off to Russian wheat exports and attacks on regional shipping infrastructure remain elevated.
LIVESTOCK:
Following last week's disappointing trade, the live cattle contracts were trading higher into the fresh new week as traders were lending the market some additional support. What remains unclear at this point is how long the technical support will last. And most likely it will hinge on whether or not any fundamental support develops later this week from either boxed beef prices or the fed cash cattle market. Show-lists for the week are mixed as show-lists are higher in Texas and Nebraska, but lower in Kansas.
The feeder cattle complex was also trading higher into Monday's close, as the market is happy to follow the live cattle contracts higher into the new week. It's yet to be seen whether or not this technical support will remain for more than just a day's worth of trade, but it's a pleasant surprise for Monday's kickoff nonetheless.
The lean hog complex trading mixed into Monday's close, as the nearby contracts were hesitant and trading lower, but the deferred contracts were trading softly higher. If consumer support happens to strengthen later in the week, then there's a strong chance that traders could become more supportive of the contracts as they were last week.