Dry, hot weather concerns drive up corn futures on Monday

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Corn futures closed mixed on Monday. Corn futures traded down by as much as 2 3/4 cents. The July front month contract is down slightly while deferred contracts increased on concerns of drier, hotter weather in key U.S. corn and soybean producing regions. It is a concern that the forecasted heat could stress the newly seeded corn crop. Analysts are expecting today’s crop progress report to show corn condition rating at 70 percent good to excellent and planting 95 percent complete.

Soybean futures closed 7 to 18 cents higher on Monday. Soybean futures recovered after prices plunged 2.3 percent on Friday due to profit taking and repositioning in the market. Soybeans prices traded up as forecasts for dry weather over the next 10 day in the U.S. Midwest and Plains threaten to reduce double-crop soybean plantings. Traders are expecting USDA Crop Progress Report to show U.S. soybean plantings 68 percent complete up from the previous week at 46 percent complete.

Wheat futures closed 4 to 7 cents higher on Monday. Wheat futures retained their upward momentum as traders expect dry, hot weather in key wheat producing regions to decrease supplies. Limited rainfall in the US Plains, and southern Russia over the next 10 to 14 days pushed prices higher. Some analysts are calling for as much as a 50 to 60 million bushel reductions in the winter wheat crop. Analysts estimate the US winter wheat crop rating to be down at 58 percent good to excellent, a 2 percent decline from the previous week.

Cattle futures closed 73 cents to $1.13 lower on Monday. Cattle futures saw sharp declines as profit taking set in on the market. Despite an encouraging Cattle on Feed Report last week, prices were weighed down by weak demand and mixed beef cutout values. Traders are encouraged that beef demand will pick up as Memorial Day weekend approaches. Trade in the cash market is expected to be steady to higher, with asking prices starting at $128 in the north and $198 in the north.

Lean hog futures closed 73 cents to $1.53 lower on Monday. Lean hog futures continue to decline on poor demand and declining pork cutout values. Expectations of soft wholesale pork values weighed heavily on the market along with negative packer margins. There is no reported trade on the cash market today, but prices are expected to be steady to 50 cents higher.



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