A risk off start Monday in the ag markets with just about everything lower except a few wheat contracts.
Randy Martinson, Martinson Ag, says a change in the extended weather to cooler and wetter in the Eastern Corn Belt pushed the soybeans into new contract lows.
Soybean oil is sharply lower again, still digesting Friday’s biofuels court ruling on Small Refinery Exemptions.
Corn is holding up a bit better with near term weather for the Western Corn Belt still hot and dry as much of that crop is in pollination. Plus, wheat is trying to push higher which is also somewhat supportive.
Wheat is trying to recover from contract lows scored in Soft Red Winter wheat and Hard Red Winter wheat contracts on short covering as those markets are oversold.
Martinson says the exception was spring wheat which is still pricing in the record yield projections from the Wheat Quality Council Tour and dropped below $6. However, it is also trying to bounce midsession along with the other classes.
However, the higher dollar and lower crude oil are providing some resistance for wheat and all the grains.
Cattle lower despite higher cash and cutouts last week as some hedge pressure has set in.
The markets are also watching the FOMC meeting this week and that could further add to the volatility seen recently in the stock market.
