By: NATHAN STUEDLE
GRAINS:
December corn closed down 1 3/4 cents and March corn was down 3/4 cents. January soybeans closed down 1 3/4 cents and March soybeans were down 2 1/4 cents. March KC wheat closed down 3 3/4 cents, March Chicago wheat was down 5 cents, March Minneapolis wheat was up 3/4 cents.
Grains and oilseed markets began what should be a fairly low volume week around a holiday break on Thursday and a shortened session for Friday as well. Prices hovered on both sides of even for Monday, with contracts managing to recover from daily lows by the close but with a lack of bullish momentum capping upside potential as well. Outside markets were mixed influence on agriculture markets for Monday, with a firmer U.S. dollar which continues to challenge long-term resistance among the highest level since May. Stock indices were higher, while energy markets were mixed. Crude oil futures moved higher but diesel prices continue to crash back to earth after trading among 2025 highs last week as talks of a peace plan for the Russian-Ukraine war have gained momentum over the past week.
LIVESTOCK:
It's was a painstaking day for the live cattle complex -- there's no other way to put it. Following Tyson Food's announcement on Friday that they're closing their plant in Lexington, Nebraska, and going to reduce their throughput in Amarillo, Texas, to only a single shift per day -- the market has taken the news poorly. Having sufficient shackle space is a big concern for grassroot producers and the thought of losing availability is rather concerning. Last week, Northern dressed cattle were marked at mostly $345, $6 lower than the prior week's weighted average basis Nebraska. Southern live deals were marked at $222 to $224, $4 to $6 lower than the previous week's weighted average.
The feeder cattle complex dropped $9.25 (its daily trading limit) right from the day's get-go as traders fully believed that the only direction that the market could go on Monday was lower. It's unlikely that the market finds any significant support ahead of the day's close.
But adversely, the lean hog complex was trading higher into Monday's closing bell, as the market sees the chaos in the cattle sector as potentially room for increased demand in the hog sector. Pork cutout values are up slightly this morning too, but more than anything, traders seem to be finding some technical footing in the market.