Ag markets ended Monday mostly higher

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The corn market seemed to benefit from spillover strength. Although seasonal pressure stemming from the ongoing harvest is probably weighing upon corn futures, prices rose modestly Monday. That very likely represented a response to strength spilling over from the soy complex, although some traders also cited firm cash prices. December corn futures edged rose 3.75 cents to $4.37/bushel at Monday’s close, while May added 3.75 cents to $4.5825.

Rumors of Chinese buying reportedly boosted the soy complex Monday. Although there has been no official news during the government shutdown, persistent rumors of Chinese buying apparently pushed soybean and product prices higher to start the week. Ideas that last Friday’s drop was overdone may also have encouraged buyers. November soybeans bounced 6.25 cents to $12.73/bushel during Monday’s CBOT session, while December soyoil gained 0.11 cents to 40.39 cents/pound, and December soymeal climbed $4.0 to $407.4/ton.

Wheat futures firmed as Monday passed. The wheat markets moved generally lower in early-week trading, with wire service sources citing a lack of news on the export front. However, strength spilling over from the corn and bean pits, as well as talk of rising Russian prices despite a canceled Egyptian tender, seemingly powered prices to slightly higher levels. December CBOT wheat closed up 0.25 cent to $6.925/bushel Monday afternoon, while December KCBT wheat inched 1.25 cents higher to $7.615, and December MGE futures crept up 1.75 cents to $7.565.

Friday evening cash strength boosted cattle futures Monday. CME traders were reportedly expecting country cattle to trade at steady-higher levels Friday evening. Indeed, fed cattle prices apparently surged to $128/cwt (cents/pound) later that day. Thus, those bullish expectations apparently limited the futures response today. December cattle futures surged 0.67 cents to 133.15 cents/pound in late Monday trading, while April advanced 0.37 to 135.65. Meanwhile, November feeder cattle slid 0.12 cents to 169.40 cents/pound, and January sagged 0.27 to 168.47.

The hog market moved mostly lower in Monday action. Growing anticipation of a fall surge in hog supplies may have exerted downward pressure upon CME hog prices to start this week. Mixed cash calls and rising cattle prices probably limited the selling, but there are strong reasons behind the hog and pork complex’s history of major losses at this time of year. December hog futures settled 0.15 cents lower at 86.35 cents/pound Monday, while April dropped 0.40 cents to 89.45.



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