Grains end mixed Monday, with livestock mostly lower.
Shawn Hackett, Hackett Financial Advisors says winter wheat saw some end of month profit taking and farmer selling.
Wheat had a 7-day rally that resulted in gains of 50 to 70 cents and KC prices hit their highest levels in months, so the market was ripe for a correction.
Hackett says there are also some rain chances in Russia.
However, if winter wheat ratings continue to spiral and geopolitical concerns languish, he says the wheat market may need to take another leg higher.
Corn futures were down slightly following wheat, but the market is still stuck in its sideways pattern according to Hackett.
He says there is a bullish story brewing in corn with hot dry conditions in Brazil as the second crop corn is pollinating and that could provide some export opportunities for U.S. corn down the road. However, its currently not getting much attention because USDA’s crop estimate for Brazil is so far above the Conab number.
Soybeans end higher led by an over $9 rally in meal on concerns about a strike in Argentina at crushing facilities, while soybean oil plunged lower on meal oil spreads.
Cattle saw end of month profit taking after a strong week last week pushed by steady to higher cash. The five-area weighted average came in at $184.15.
Copper and precious metals have had a huge rally on geopolitical concerns and as investors are looking for hard assets to purchase on fears about the mounting U.S. debt.
