GRAINS:
Grain markets were under pressure almost from the opening bell Sunday evening as advancing Brazilian fieldwork combined with a return to above-normal temperatures through much of the U.S. Midwest had grain traders rapidly removing premium which was built up in the corn and wheat markets over the past week or two. Wheat markets in particular are paving the way lower as traders have all but removed the three-day rally from a week ago from the market at this point. Outside markets to begin the week stock indices recovering slightly from ugly price action to end last week. Meanwhile, the U.S. Dollar Index continues to struggle to gain traction at its lowest level in almost three months. March corn closed down 8 3/4 cents and May corn was down 8 cents. March soybeans closed down 10 1/2 cents and May soybeans were down 9 3/4 cents. March KC wheat closed down 12 3/4 cents, March Chicago wheat was down 11 cents, March Minneapolis wheat was down 9 1/4 cents.
LIVESTOCK:
I hate to put the cart before the horse, but it’s seeming as if Friday’s Cattle on Feed report could be giving the live cattle complex some much needed support, which thankfully allowed all the live cattle contracts to trade higher into Monday’s closing bell. It’s entirely too early to say whether or not the market will shift its trend from lower to higher, but the day’s upward movement is a nice trend either way. The feeder cattle complex didn’t sit around waiting idly to see what the live cattle market was going to do with Friday’s Cattle on Feed report — as it traded well above $3.00 higher in all the contracts. Although morning pork cutout values were higher, the lean hog complex wasn’t willing to shake last week’s tumultuous downturn just yet and fully change its direction. The spot April contract along with the deferred months are trending lower as the market wants to see continued consumer demand. What’s potentially most exciting about the uptick in pork cutout values Monday morning is that the big jump isn’t stemming from just one of the major cuts; rather, most of the major cuts were higher this morning.
