Wheat ventured into positive territory at times Monday, but such moves were short-lived. Futures at all 3 locations ended at or near their daily lows with losses in the teens for Chicago and Kansas City Wheat; Minneapolis Wheat ended 0.20+ lower in most contracts. Traders in the Wheat market focused on minimizing risk ahead of what is expected to be a slightly negative carryover adjustment by USDA Wed.
Corn futures finished with losses in the 0.14- to 0.16 range in the Sept through Jul contracts. Far-deferred futures posted lesser declines. Pressure on corn futures built around mid-morning as funds led a round of Long liquidation. With USDA's Sept crop reports out Wed and the Fed monetary policy meeting ending Thurs, traders opted to lighten their Long exposure. On the day, funds were sellers of an estimated 8,000 contracts (40 million bu.) of Corn
Soybean futures saw a choppy day of trade, but weakened into the close to post double-digit losses in the mid to upper teens. The onset of harvest in the US and favorable weather for Soybean planting in Brazil provided pressure in the Soybean market today, although selling was limited as traders are evening positions ahead of Wed's Key USDA reports
Nearby lean Hog futures ended higher on Short-covering, with the Oct and Dec contracts up $1.225 and $1.075, respectively. Feb Hogs ended 0.075 higher, with the rest of the market down 0.30 to 0.625. Traders' focus was on evening positions, as they worked to narrow the discount nearby contracts hold to the cash index.
Oct Cattle experienced an outside-day down and sharply lower close to turn the short-term chart picture negative. Talk of index fund rolling and ideas that the cash market could struggle to add to last weeks gains without sharply higher Beef prices helped to pressure. Dec closed just slightly lower on the day as this contract was supported by the index fund roll and from talk of tightening supply into the end of the year. The market traded slightly higher into the pit opening but pushed slightly lower on the day into the mid-session. Reports that cash Cattle in Kansas and Nebraska traded Friday at $124.00-$125.00, + $1.00-$3.00 from last week helped to support the early bounce.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.