GRAINS:
Corn, soybeans, soymeal, and wheat moved sharply higher to start the new month, presumably as funds rushed to cover some of their large short positions in each market. Much of the bearish news may have already been introduced to the markets and the seasonal tendency is for markets to bottom in the early fall. Both December corn and Kansas City December wheat rose to the 50-day moving averages with KC up for the sixth consecutive day. Bean oil futures fell hard early on the plunge in canola related to China’s decision to start an anti-dumping investigation on Canadian canola, recovering some at the end. December corn closed up 8 1/4 cents per bushel at $4.09 1/4 and March corn was up 8 1/4 cents at $4.27 1/4. November soybeans closed up 12 cents at $10.12 0/1 and January soybeans were up 12 1/2 cents at $10.30 1/2. December KC wheat closed up 11 cents at $5.76 1/4, December Chicago wheat was up 15 1/4 cents at $5.67 3/4 and December Minneapolis wheat was up 6 cents at $6.07 1/2.
LIVESTOCK:
Following the three-day weekend, the livestock complex is trading fully higher as traders are eager to jump back into the marketplace. New showlists appear to be mixed, higher in Nebraska/Colorado, but lower in Kansas and Texas. Coming back from the long Labor Day weekend the live cattle complex is met with ample trader support and by higher midday boxed beef prices which is helping rally the market. It will be especially interesting to see how the spot October contract closes as the market is up against nearby resistance at $180, and then will again be up against resistance at the market’s 100-day moving average. Again, this week the feeder cattle complex is trading in the live cattle market’s shadow, closely following whatever moves it makes. Thankfully for cattlemen’s sake, the market is trading higher into Tuesday’s noon hour and so long as nothing rattles the live cattle market’s upward trend, the market should be able to keep its higher trend. Once again, the lean hog market is rocking and rolling as the complex has elected to keep with its upward trend following the long three-day weekend. But with midday pork cutout values higher, traders see no reason why they shouldn’t continue to advance the market if demand is going to be plentiful.
