By: NATHAN STUEDLE
GRAINS:
September corn closed up 4 cents and December corn was up 5 3/4 cents. August soybeans closed down 3 1/4 cents and November soybeans were down 1/4 cents. September KC wheat closed down 1 1/4 cents, September Chicago wheat was down 3 1/2 cents, September Minneapolis wheat was down 10 cents.
Row crop prices posted double-digit trading ranges on Monday in the first full session removed from Friday's USDA updates. It appears traders are torn between their previous bearish rationale given there has been little change on the weather radar with ample precipitation through the next 15 days. Outside markets were mixed Monday with stock indices recovering from a lower start amid heightened trade tensions between the U.S. and Mexico as well as the European Union. The EU has stated that retaliatory action will not be considered until following the Aug. 1 deadline, so investors took that with a hint of optimism. Energy markets on the other hand turned lower after a firm start as traders and investors await further news on possible U.S. sanctions against Russia, meanwhile the ongoing tariff headlines and OPEC+ production increases through summer are weighing on prices.
LIVESTOCK:
After aggressively running to new contract highs on Friday, the live cattle complex walked back some of the recent position it has concurred as traders aren't as bullish at the start of this week. Some external pressures, such as the high tariffs threat on Russia if a peace deal isn't met within 50 days could be unsettling to traders, but more than anything, it seems as though traders are still catching their breath from last week's whirlwind-like trade and are trying to decipher what to do with the market now.
The feeder cattle complex was feeling the same pressure that's affecting the live cattle complex, but only in a more aggressive form as most of its contracts traded $4.00 to $5.00 lower. Although the board traded sharply lower, it's likely that sales in the countryside will be largely unphased as supplies are limited enough that buyers have to remain aggressive if they want to fulfill their orders.
The lean hog complex saw some of the same skepticism from traders that the cattle complex did, but not near as dramatically, as most of its contracts are trading just $1.00 to $3.00 lower. What is encouraging to see, however, is the fact that pork cutout values were higher, which is mainly because of the belly's $9.06 jump, but the picnic, rib and ham were all up over $2.00 as well.
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