Corn futures closed higher on Monday. The market was supported by declining yield and production ideas and outside market strength. USDA will update crop condition ratings this afternoon and dry conditions in the central Corn Belt could further lower ratings. Strength in Dow Jones futures and crude oil and weakness in the dollar were also supportive factors. However, gains were limited by some profit-taking and technically overbought conditions. September ended 3 3/4 cents higher at $7.56 1/4 and December was 3 cents higher at $7.70.
Soybean futures traded solidly higher on Monday. Futures were supported by fund buying amid concerns about declining yield and production estimates. Dry weather in the central Midwest is trimming yield potential and could weigh on crop condition ratings this afternoon. Outside markets helped extend gains as the stock market and crude oil were higher while the dollar index was lower. September ended 23 1/4 cents higher at $14.38 and November closed 23 1/2 cents higher at $14.47.
Wheat futures were mixed on Monday. Front end CBOT futures turned lower into the close on profit-taking in light volume. But the KCBT and MGE were supported by tight supplies of high protein wheat. Spring wheat yield have been disappointing and despite some rain in the southern Plains, drought remains an issue that could linger on into the fall that could hamper hard red winter wheat production. CBOT September ended 5 cents lower at $7.57 1/4, KCBT September was 8 cents higher at $8.74 and MGE December closed 2 1/4 cents higher at $9.39.
Cattle futures closed lower on Monday. Recent weakness in boxed beef prices and concern that cash cattle and beef markets will be on the defensive until after Labor Day weighed on futures. Choice cutouts were down $1.49 and select cuts were $1.78 lower on Friday. Further losses in the futures market were limited by strength in the stock market. October ended 60 cents lower at $114.60 and December was 35 cents lower at $116.75.
Lean hog futures traded lower on Monday. The October contract fell to the lowest level in one month amid concern that pork prices will weaken through Labor Day. Cash markets were steady to $1 lower to start the week. Losses are being limited by the discount of the cash market to futures, although that has narrowed recently. October closed 70 cents lower at $86.40 and December was 90 cents lower at $83.68.
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