By: NATHAN STUEDLE
GRAIN MARKET SUMMARY
Grain futures opened the new trading week sharply lower Monday, with corn, soybeans and wheat all falling to multiweek lows as harvest pressure and technical selling continued weighing on prices.
December corn futures dropped 7¼ cents to finish at $4.67 per bushel, reaching a nine-week low. Corn remains under pressure following USDA's October supply and demand report, which raised projected production to more than 16 billion bushels and ending stocks to 1.849 billion bushels. Additional selling came after USDA reported weekly corn export inspections of approximately 672,000 metric tons, falling short of trade expectations. Favorable harvest conditions across much of the Midwest are also allowing farmers to make progress in the fields, adding seasonal pressure.
Soybeans finished lower as well, with November futures losing 7¾ cents to $12.53½ per bushel, reaching their lowest level in seven weeks. The decline came despite renewed Chinese purchases of American soybeans. Traders remain concerned about harvest supplies, while investment funds continue reducing bullish positions in agricultural commodities. Soybean meal declined $2.30 per ton, while soybean oil lost 44 points.
Wheat futures joined the downturn. December Chicago wheat fell 5¼ cents to $6.55¼, while Kansas City wheat lost 4½ cents to $6.99½. Minneapolis spring wheat declined 6¼ cents. Wheat prices continue facing pressure from global export competition and generally improving winter wheat planting conditions.
Overall, Monday's grain markets remained firmly defensive, with favorable harvest weather, weaker technical trends and disappointing corn export inspections outweighing positive developments in soybean demand.
LIVESTOCK MARKET SUMMARY
Livestock futures finished mixed Monday, with live cattle posting modest losses, feeder cattle rallying to a three-month high and lean hogs coming under renewed selling pressure.
December live cattle declined 32½ cents to settle at $228.02 per hundredweight. The market experienced some profit-taking following last week's gains, although tight cattle supplies and stronger cash cattle prices continue supporting the overall outlook. USDA reported cash cattle averaged $224.19 last week, an increase of $4.05 from the previous week. Wholesale beef prices were mixed at midday. Choice boxed beef declined 57 cents to $371.74, while Select beef jumped eight dollars to $361.05.
Feeder cattle futures showed considerably more strength. November feeders gained $2.025 to close at $343.925 per hundredweight, reaching their highest level in approximately three months. Lower corn prices continue providing some relief on feed costs, while tight supplies of replacement cattle and technical buying are supporting feeder futures.
Lean hogs moved lower Monday as the market continued struggling with weak cash prices and declining wholesale pork values. December hog futures lost 57½ cents to settle at $66.35 per hundredweight, remaining near last week's contract low. The latest CME lean hog index declined 90 cents to $74.19, while USDA's midday pork cutout value fell $1.35 to $79.20. Weakness in pork belly prices contributed to the decline.
Overall, tight cattle supplies and improved feeding economics continue supporting the cattle complex, particularly feeder futures. Lean hogs remain the weakest segment of the livestock market, with declining cash prices and soft wholesale pork demand limiting recovery attempts.