A risk off day and broad based selling in grain and livestock futures to start the week.
Brian Grete, Pro Farmer Editor, says grains saw massive fund and technical selling and new crop corn and soybeans made new lows for the move and November soybeans closed under $11.
Grains saw double digit losses across the complex and corn and soybeans gave back Friday’s gains with favorable rains and chances for more in the Eastern Corn Belt tied to Hurricane Beryl.
Plus, traders are gearing up for USDA reports as higher quarterly stocks and higher corn acreage are reconciled on the balance sheets and could push both old crop and new crop supplies higher on Friday.
Wheat futures fell with corn and soybeans but are still seeing some harvest pressure with better than expected yields in Kansas and increasing crop estimates from Russia.
Funds continue to push to a record short position in the grain complex for this time of year. Grete says,
“Traders have no reason to buy at this point,” he says.
Cattle futures failed as well on profit taking as the market got caught up in the commodity wide selling, reversing early stength.
The market also disregarded the record high cash trade as the North saw $200 live sale prices and the Five Area Weighted Average was a record for a fourth week at $197.09.
Feeders also failed to rally in the face of sharply lower corn futures.
Lean hog futures ended mostly lower and have continued to struggle to find a bottom with the lower Lean Hog Index and softer cash.
