GRAINS:
May corn closed down 6 3/4 cents and July corn was down 5 1/2 cents. May soybeans closed down 4 1/2 cents and July soybeans were down 4 cents. May KC wheat closed down 3 3/4 cents, May Chicago wheat was down 13 1/2 cents, May Minneapolis wheat was up 3 cents.
As was wildly expected, crude oil (and related energy markets) jumped drastically again on the Sunday open, with oil hitting the highest level seen since the first half of 2022 following the initial Russian invasion of Ukraine. Prices eventually eased on profit-taking, falling back below $100 per barrel, accelerated on reports that G7 nations will discuss a coordinated release of oil reserves to ease the supply shock caused by the trade halt in the Persian Gulf. Row crops fell from highs along with the energy sector, with overbought technical conditions likely playing a role in encouraging profit-taking and hedging as well. Equity markets were lower again but off their daily lows, with the Dow Jones Industrial Average on pace for the first monthly loss since last April, barring a mid-March turnaround. The U.S. dollar was firm but will face a major technical test near 100 on the index, which has held since early 2025.
LIVESTOCK:
It’s almost as if the live cattle complex thinks cattlemen and traders alike would grow weary if the market simply traded in a lackadaisical mundane fashion as opposed to the rollercoaster ride it turns into at times. Which perfectly describes the market’s $3.00 to $4.00 decline Monday, as news broke late last week that union workers will indeed strike at the JBS packing plant in Greeley, Colorado. The strike is expected to happen the week of March 16, and JBS intends to shift production to other facilities during that time. This causes great anxiousness for the cattle complex as the market is already seeing minimal throughput from packers as they try to manage their margins to the best of their ability. It also raises the question: How is this going to affect beef consumers? Unfortunately, a level of uneasiness will likely reside within the market until this ordeal is played out; expect continued volatility until then. New showlists appear to be mixed, higher in Texas, but lower in Kansas and Nebraska/Colorado.
As expected, the feeder cattle complex has noted the decline in the live cattle market and consequently elected to send its contracts tumbling $4.00 to $5.00 lower into Monday’s close. Until the live cattle complex settles down and trade in a more stable manner, the feeder cattle contracts will likely continue to scale lower.
Not even the lean hog complex could trade higher Monday, as its market is also seeing a slight regression into the closing bell. For the lean hog complex the market’s resistance seems to be inflicting pressure more than anything else.
