What a day in the grain trade once again! July corn closed up its 25-cent daily limit Monday, the second time in three sessions, with a dry forecast for Brazil adding to bullish concerns and keeping commercial demand motivated. Soybeans, soy products and all three U.S. wheats were also higher with ongoing concerns about adverse weather.
Strong fund buying was seeing on the day with funds estimated to have bought 9,000 wheat, 12, 000 corn, along with 10,000 bean contracts and a combined 14,000 soy product contracts as of noon on Monday. Rising basis continues to play a factor as well along with all of the weather concerns in South American and the Midwest. Forecasters are split on what the weather patterns could look like short and long term in the US Midwest and that is causing us to build more weather premium in.
Meantime, it was a surprisingly ok day in livestock with many live cattle and lean hog contracts higher while feeder cattle finished off the lows of the session. Despite rising grain prices, it could’ve been much worse in the trade on Monday. Demand and strong fundamentals will need to remain to at least keep us steady in livestock moving forward.
Farm and Ranch Director Jesse Allen has our closing report: https://lightningstream.com/ajax/GetODFile.ashx?call=MIDWEST&fileid=1406
