Corn: Corn futures settled 1 to 2 cents higher, which was high-range. Corn futures held in a narrow range during today’s two-sided day of trade. In the end, light short-covering supported the market. With the high-range close and with funds heavily short the market, additional short-covering Tuesday can’t be ruled out.
Soybeans: Soybean futures faced pressure for most of the day, but the market was able to finish high-range with just fractional losses through the August contract. Soybean futures faced pressure for much of the day as traders took advantage of dollar strength and Friday’s gains by booking some profits. Traders also noted recent rains in Brazil that helped planting progress to move ahead of the five-year average pace and should help get beans that have been planted off to a solid start. This overshadowed concerns about dryness in Argentina.
Wheat: Wheat futures faced pressure throughout the day and settled low-range with winter wheat down 4 1/2 to 6 cents and spring wheat 4 to 10 1/4 cents lower. After posting some corrective gains on Friday, sellers returned to the wheat markets today. General weakness in the commodity sector paired with gains in the U.S. dollar index added to negative attitudes. Slack weekly wheat export inspections and another reminder of strong Russian wheat sales added to negative attitudes.
Cotton: Cotton futures finished high-range with gains of 115 to 159 points through the July contract. Cotton futures started rather slowly, with strength in the U.S. dollar index limiting early buyer interest. But as futures pushed above Friday’s high and then the October high, buy stops were triggered and gains were sharply extended. Today’s high-range close opens the doors to followthrough buying Tuesday. But if early buyer interest is limited, the market would be vulnerable to profit-taking.
Cattle: Live cattle futures settled $1.20 to $1.75 lower through the December 2018 contract, which was low-range. Last Friday’s Cattle on Feed Report that showed October placements were well above the average pre-report estimate weighed on cattle futures today. Additional pressure came from fund liquidation and chart-based selling. With the low-range close, futures are vulnerable to followthrough selling Tuesday, But with December live cattle futures at a roughly $2 discount to last week’s average cash cattle price, additional pressure should be limited until traders get a gauge on this week’s cash trade.
Hogs: Nearby lean hog futures posted solid gains to start the week, with the December through June contracts finishing 75 cents to $1.40 higher on the day. Far-deferred contracts faced pressure earlier in today’s session, but the market eventually edged out slight gains for the day. Today’s kill was a strong one at 465,000 head. Packers will likely keep kill lines as full as possible preceding holiday downtime Thursday to take advantage of strong margins that have climbed to $42.05 a head.