Grain futures prices were under pressure to start the week with soybeans making new lows for the move. What could be the catalyst to encourage a short covering rally?
Corn
Corn futures were under pressure to start the week with the front month March contract leading the way lower, settling at 440 1/4, that was down 6 cents on the day. Though the market was able to fight off new contract lows by 3/4 of a cent, new closing lows were marked. The new crop December contract settled the day 1 3/4 cents lower to 474 1/2, a new closing low by 1/2 of a cent.
This morning’s weekly export inspections were reported at 901,958 MT (35,508,508 bushels), that was within the range of expectations and up from 746,933 MT last week.
Soybeans
Soybeans got hit hard today, as with corn, the front month March futures contract was the leader to the downside. At the close March futures were 15 cents lower to settle at 1194 1/4, the lowest close since the first week of June. New crop November futures were down 4 3/6 at the close, settling at 1180 1/4.
This morning’s weekly export inspections were reported at 889,717 MT (32,691,494 bushels), that was within the range of expectations but below last week’s 1,184,956 MT.
Wheat
Chicago wheat futures could not buck the weakness in the grain complex today. At the close, March Chicago wheat futures were 6 3/4 cents lower to settle at 593 1/2.
This morning’s weekly export inspections were reported at 264,666 MT (32,691,494 bushels), this was below last week’s 315,186 MT and below the range of expectations.
Cattle
Cattle futures were sharply higher mid-morning but reversed to finish the day lower across the board. At the close April futures were .45 lower to settle at 181.225, that was nearly 2.00 off the intraday high. February futures are about a week away from first notice day, they settled 1.07 lower to 177.37.
March feeder cattle futures finished the day 1.07 lower to settle at 238.625, that was about 3.30 off the intraday high.
Some of last week’s bullish headlines may have gotten a head of them self, which took prices to their most overbought levels since marking contract highs. As mentioned on RFD-TV this morning, a consolidation and retracement of the recent rally would likely be welcomed by the long-term Bulls.
Below are the estimates for Wednesday’s biannual Cattle Inventory report.
Lean Hogs
April lean hogs were able to catch a bid into the close, settling the day 17 cents higher to settle at 83.42, that was near the highs of the day. With prices near the October/November highs, we wouldn’t be surprised to see the market attempt to catch its breath near these levels.