Corn futures closed 4 to 9 cents lower on Monday. Corn futures traded mostly lower much of the session although prices did show slight improvement around midday. However, spillover pressure from tumbling soybean prices weighed on the market, prohibiting any chance for upside momentum. New crop corn is not expected to benefit much from the recent weekend rains, so pressure surrounding the market is mostly due to speculative selling. Analysts are expecting today’s crop progress report show corn condition ratings 1 percentage point lower at 23 percent good/excellent.
Soybean futures closed 43 to 44 cents lower on Monday. Today’s market losses can be attributed mostly to heavy weekend rains across the Midwest and slightly better forecasts for the coming week. The market posted moderate losses much of the day despite long term bullish fundamentals and expectations for sharp cuts to 2012 yield projections. Today, USDA reported export sales of 160,000 tonnes to China for 2012/12 delivery, but the market did not seem to react to such news. USDA’s crop progress report will be released this afternoon, and analysts are estimating a slight decline of 1 percentage point to the soybean crop condition rating today.
Wheat futures closed mixed on Monday. Wheat futures were able to turn the tide and close up to 2 cents higher at CBOT and KBCT. The majority of the session saw lackluster trade as spillover pressure from the other grain markets kept wheat advances in check. However, prices were able to rally shortly before the close on market short covering. Prices were also supported by somewhat bullish export inspections and news that Russia in expected to only harvest 45 million tonnes of wheat in 2012.
Live cattle futures closed unchanged to lower on Monday. Cattle futures could not hold on the market gains amid weakness in the grain complex. Higher midday boxed beef prices were also supportive to the market today as beef prices have been on a steady decline as of late. Expectations for higher cash prices this week remain intact, however trade is not anticipated to pick up until the latter part of the week.
Lean hogs futures closed lower on Monday. Initially, prices opened higher on grain market pull backs and spillover buying in the cattle market. Friday’s higher pork cutouts were also supportive to prices, helping to limit losses. However, market prices turned lower as trade in the cash market remains uncertain and overall weakening fundamentals. Cash prices were reported up to 50 cents to $1 lower at some terminals today.