By: NATHAN STUEDLE
GRAINS:
May corn closed up 5 3/4 cents and July corn was up 5 3/4 cents. May soybeans closed up 13 1/2 cents and July soybeans were up 13 1/2 cents. May KC wheat closed up 8 1/4 cents, May Chicago wheat was up 13 1/4 cents, May Minneapolis wheat was steady.
The soybean complex led crop futures higher on Monday, despite another round of canceled peace talks in the Middle East over the weekend. The soybean market has recently traded bearishly on signals of continued conflict in the Persian Gulf, but for Monday ignored that recent trend. Corn and wheat futures were higher as well, with the latter continuing to rally on widespread drought across the wheat areas in the U.S., with conditions expected to decline once again in Monday afternoon's Crop Progress report. Energy markets were firm on the news of stalled negotiations between the U.S. and Iran, with West Texas Intermediate crude oil futures higher for the fifth time in the past six sessions. Equity markets drifted lower to begin the week.
LIVESTOCK:
The live cattle complex is off to an ambitious start this week, with contracts enjoying a strong $3.00 plus rally as boxed beef prices were higher to start the week, and traders continue to hope that fundamental support will surface later this week. New show-lists appear to be mixed, higher in Kansas and Texas, but lower in Nebraska/Colorado. Last week Northern dressed cattle traded at mostly $386 and Southern live cattle traded at mostly $246, both of which were $2.00 lower than the previous week's weighted average.
The feeder cattle complex was also enjoying a bullish rally, as traders continue to move the contracts in the same direction as the live cattle complex. And so long as the live cattle complex continues to trade in a bullish manner, the feeder cattle complex shouldn't struggle to keep the same trend.
The lean hog complex also traded higher after the market endured some pressure just last week and chopped sideways throughout most of the week's duration. But if pork demand remains stable and potentially pushes higher, then there's a chance that contracts will also be able to advance.