By: NATHAN STUEDLE
GRAINS:
March corn closed down 2 1/4 cents and May corn was down 2 cents. March soybeans closed down 6 cents and May soybeans were down 5 1/2 cents. March KC wheat closed down 11 cents, March Chicago wheat was down 7 cents, March Minneapolis wheat was down 5 1/4 cents.
Traders worked to remove weather related risk premium from U.S. wheat markets on Monday, with the severe cold event forecast to improve by midweek and decent snow cover across much of the U.S. leading to minimal crop damage thoughts for now. Meanwhile, corn and soybean markets also relaxed from firm closing prices on Friday, on a mix of negative influence from wheat as well as technical pressure. Outside markets were mixed with the story of the day being gold's record-breaking push over $5,000 per ounce for the first time ever on Monday. Investors continue to pour money into the commodity amid heightened geopolitical uncertainty, with markets now zeroing in on the possibility of another government shutdown with funding set to expire on Jan. 30.
LIVESTOCK:
Last Friday was a whirlwind of developing factors for the live cattle market to note and keep track of, between the fed cash cattle that finally developed, and the monthly Cattle on Feed report that was released. Thankfully, the neutral to slightly bearish tone of the Cattle on Feed report was quickly overlooked by the strong developments in the fed cash cattle market, as traders elected to again push the live cattle contracts higher today. What will remain an obstacle for the market to manage this week is the technical resistance that's formed in the live cattle complex. There's an argument to be made that the market could potentially break through that barrier if fed cash cattle prices are higher again this week, but that's taking a fairly bullish look at the marketplace. Even if prices do trade higher again this week, there's a strong likelihood that traders won't want to challenge that threshold, especially considering that later this week, the highly anticipated Cattle Inventory report is set to be released. New showlists appear to be mixed, higher in Texas, but lower in Kansas, and Nebraska/Colorado.
Boxed beef prices are higher: choice up $0.33 ($369.25) and select up $3.58 ($365.97) with a movement of 50 loads (32.53 loads of choice, 3.84 loads of select, 4.95 loads of trim and 8.53 loads of ground beef).
The feeder cattle contracts were also trading higher as the market finds power and momentum in the fact that fed cash cattle prices continue to scale higher. So long as the live cattle contracts continue to trade higher, the feeder cattle complex will also likely do the same.
And last but not least, the lean hog contracts were also enjoying a mild rally into midday Monday. The market has seen steady support from consumers, which has helped encourage the contracts to continue to trade higher, although the market is continuing to drive to new contract highs when it does so.