Corn futures sustained most of their early-Monday gains. The corn market posted a sizeable bounce from weak Sunday night quotes in response to news of a sizeable sale to Mexico. Prices declined in reaction to the monthly USDA Crop Production and WASDE reports released at 11:00 AM CST, despite what looked to be bullish adjustments to the U.S. data, then came back before noon. December corn futures gained 6.0 cents to $3.735/bushel just before midday Monday, while May added 5.25 to $3.9475.
The USDA report results undercut the soy complex. Talk of underlying demand strength again supported the soy markets to start the week, with nearby bean futures challenging their late-October highs by midmorning. But bulls couldn’t sustain the early rise after the monthly reports were construed as bearish for the soy outlook. The USDA boosted soybean production and carry-out and left forecast meal stocks unchanged. Lower oil stocks are supporting that market. January soybean futures fell 3.0 cents to $10.3725/bushel in late Monday morning trading, while December soyoil moved up 0.06 cents to 32.46 cents/pound, and December meal slumped $5.50 to $385.0/ton.
The wheat markets proved mixed after the reports. Wheat futures appeared to be following CBOT around to start the week, despite the bearish export situation. Bulls got some relief from the monthly reports, since the U.S. numbers seemed support. Conversely, the global data had a bearish bias. December CBOT wheat rallied 3.0 cents to $5.175/bushel as the lunch hour loomed Monday, while December KC wheat inched up 1.75 cents to $5.71/bushel, and December MWE wheat edged 1.0 higher to $5.4725.
Weather news may be supporting cattle futures. The cattle and beef situation remains tight, but the supply shortage could become extreme if the Great Plains are hit with a cold, snowy winter. Thus, futures are rallying in response to the storm now crossing the northern tier of states despite the relatively low population of fed cattle in that region. December live cattle futures advanced 0.67 cents to 167.47 cents/pound around midsession Monday, while April futures climbed 0.52 to 167.67. Meanwhile, January feeder cattle futures jumped 1.05 cents to 233.50 cents/pound, and March feeders ran up 1.15 to 230.80.
Talk of weather conditions may be boosting hogs as well. CME hog traders seemingly expect a short-term hog/pork rally, which probably reflects suspicions that hams are underpriced. However, the current winter storm may also slow hog growth and make deliveries difficult, thereby tightening mid-November supplies. December hog futures vaulted 1.27 cents to 90.05 late Monday morning, while April hogs rallied 0.42 to 90.52.