Corn futures benefited from spillover strength Monday. The energy sector breakdown also depressed corn, soyoil and beans last Friday due to their biofuel connections. Crude bounced strongly from Sunday night lows, as did the wheat markets; strength from both sectors seemed to spill over into the corn market despite the plentiful supply of the yellow grain. March corn futures closed 1.0 cent higher at $3.8975/bushel Monday, while July added 1.25 to $4.05.
The soy complex ended Monday in decidedly mixed fashion. Soybean and product prices moved ‘all over the place’ Monday. For example, soyoil quotes fell on follow-through selling from last Friday’s big energy dive. However, it later followed the crude market higher. That strength, as well as the big gains posted by wheat, probably spilled over into the soybean pit. In contrast, the meal market seemed to suffer from cash weakness all day. January soybean futures edged up 1.0 cent to $10.17/bushel in late Monday trading, while January soyoil bounced 0.07 cents to 32.36 cents/pound, but January meal slumped $4.3 to $362.0/ton.
The wheat markets resumed last week’s surge. Talk that Russian officials are tightening wheat export rules and Sunday night news of Russian price strength seemed to spark a fresh surge in U.S. wheat prices. Talk of potential freeze damage to the Black Sea crop also seemed to power the advance. March CBOT wheat soared 29.5 cents to $6.0675/bushel at its Monday settlement, while March KC wheat jumped 23.25 cents to $6.6025/bushel and March MWE wheat leapt 29.0 cents to $6.50.
Winter weather concerns seemed to boost cattle futures. CME traders reportedly worried that soaring beef prices will hurt demand during the weeks ahead, which tended to undercut live cattle prices in early trading. However, more serious concerns emerged about the performance of feedlot cattle if the early cold and snow experienced lately persists through winter. That development reportedly powered late cattle & feeder gains. February live cattle surged 1.62 cents to 170.85 cents/pound at their Monday close, and April climbed 0.90 at 169.90. January and March feeder cattle futures spiked the 3.00-cent daily limit to 234.07 and 233.20 cents/pound, respectively.
Hog futures traded mixed to start the week. Concerns about large supplies and weak demand seemed to undercut expiring December hog futures today, whereas most deferred contracts posted moderate gains. That may reflect suspicions that the USDA overestimated likely 2015 supplies on its September Hogs & Pigs report, as well as ideas that soaring beef prices will strengthen substitution demand for pork. February hog futures ended Monday having rallied 0.70 cents to 88.92 cents/pound, while June hogs gained 0.45 cents to 97.50.