Grains and livestock end mixed Monday.
Chip Nellinger, Blue Reef Agri-Marketing says corn got some help from a slightly friendly USDA Quarterly Stocks Report with corn at 1.76 billion bushels, which was 84 million bushels below the average trade guess.
However, most of the strength in corn and wheat, according to Nellinger, was due to end of quarter fund short covering.
However, December corn could not close above resistance in the $4.25 to $4.27 level due to a pick up in farmer selling at these levels.
Quarterly stocks for soybeans were estimated at 342 million bushels, which was in line with estimates.
So, Nellinger says the set back in soybeans was corrective selling tied to rain chances in the 10 day forecast for Brazil.
“If those rains are verified the market could see a set back, if not soybean could get explosive,” he says.
Wheat stocks came in at 1.99 billion bushels, just slightly above estimates.
All wheat production was pegged at 1.97 billion bushels which was above expectations, but below the production estimate USDA provided in August.
Again, Nelliger says end of quarter fund short covering was the biggest factor supporting the rally in the wheat market.
The key moving forward will be whether or not funds continue that trend into a new quarter for all of the grains.
Live cattle made new high closes for the move on fund buying and higher cash and cutouts.
Feeder cattle ended lower reacting to stronger corn prices.
Hogs were mixed.
