By: NATHAN STUEDLE
GRAINS:
September corn closed up 1 1/2 cents and December corn was up 2 1/4 cents. August soybeans closed up 5 cents and November soybeans were up 4 cents. September KC wheat closed down 10 cents, September Chicago wheat was down 5 cents, September Minneapolis wheat was up 3/4 cents.
Corn and soybean markets held modest gains to begin the new week, even as both struggled to sustain early highs, with soybeans specifically hitting chart resistance in the $12.00 range. Wheat futures turned lower on the overnight trade after a strong start, seemingly on profit-taking as traders weigh new logistical risks facing Russian wheat exports in the Black Sea combined with lower year-over-year production expected worldwide. An overarching sense of weather bullishness is also present in the row-crop complex to begin the new week, with a hot and dry forecast ahead for the next 7-10 days, particularly in the northern half of the U.S. Outside energy markets also leaned bullish to begin the new week, with President Trump announcing the U.S. will be reimplementing its blockade of the Strait of Hormuz.
LIVESTOCK:
After opening Monday slightly lower, live cattle futures turned softly higher, hoping greater support will arise throughout the week. Unfortunately, last week boxed beef prices were mostly lower and fed cash cattle traded lower too, as the dog days of summer are having their effect on the cattle complex. But after plunging lower ten straight days, it's refreshing to see the live cattle contracts higher and hopefully trader support will remain through the week.
Upon seeing a little extra support in the live cattle contracts, the feeder cattle contracts were also trading higher but slipped lower by Monday's close. Demand was mixed last week for feeder cattle, with a lot of sale barns noting that haying time has pulled some buyers out of the market.
The lean hog complex continued to trade mixed as the nearby contracts found mild technical support this morning, but faded by the close with the rest of the contracts and traded slightly lower. Midday pork cutout values were a tick lower, but traders remain hopeful consumer support will be strong again this week and help encourage traders to continue to push the contracts higher. Unfortunately, the market's resistance at $100.00 in the spot August contract remains a brutal threshold for traders to try to maneuver.