Soybeans end slightly higher, with corn and wheat lower. Cattle and hogs end strong.
The soybean complex was under expanded limits and bean oil ended the full 450 points limit on Monday as the market still tries to work in the bullish surprise of higher RVO levels on biomass based diesel the EPA delivered on Friday.
Soybeans were held back as they ran into chart resistance and with sharply lower soybean meal serving as an anchor as it was being spread against bean oil in anticipation of higher crush.
Corn Has Ugly Close
He says corn futures ended sharply lower with spillover from the lower soybean meal market but the lower wheat futures also contributed to the weakness.
The July contract has continued to suffer in the face of strong demand with export inspections at nearly 66 million bu. on Monday.
The new crop corn market has seen pressure from the lack of a weather threat and the anticipation of higher crop ratings on Monday afternoon.
Technically the charts are looking fairly ugly and he doesn’t think its out of the question for the market to retest the lows.
Wheat Sees Harvest Pressure
Wheat futures took back a portion of Friday’s gains on hedge pressure as drier weather in the Southern Plains will allow the harvest to advance.
The market also saw spillover from lower corn prices.
Cattle Recover But is a Retest of the Highs in the Cards?
The cattle market recovered on Friday with geopolitical concerns fading, also allowing the stock market to recover.
President Trump also says ICE raids as part of the administration’s immigration crackdown will halt at farms and meat processing facilities which gave the market a psychological boost.
Futures have had a healthy correction and may be set to resume buying and retest the highs says Pfitzenmaier, as long as cash can stretch higher again this week.
“Cutouts continue to support higher cash prices so I don’t see any reason the futures won’t retest the highs especially with the big discount the futures are holding,” he explains.
According to Pfitzenmaier that should also keep the funds defending their long position in the live and feeder cattle futures. In the case of the feeders it now stands at a record long of 36,000 contracts.
Lean Hogs Hit Contract Highs....Again
Lean hog futures hit more contract highs as the market continues to get a boost from higher cattle and beef prices, plus a rising cash index and pork cutouts.
The one caveat is July is now the spot month and holds a significant premium over the index.


