By: NATHAN STUEDLE
GRAINS:
May corn closed up 1 3/4 cents and July corn was up 2 cents. May soybeans closed up 3 1/4 cents and July soybeans were up 3 1/4 cents. May KC wheat closed down 7 1/2 cents, May Chicago wheat was down 3 cents, May Minneapolis wheat was down 2 1/4 cents.
Corn and soybean markets held stubbornly to near-term chart support to begin the week, supported by a still uncertain and risky situation for energy markets amid the ongoing conflict in the Middle East. Wheat futures broke lower again to begin the week with traders pricing in added rainfall chances for the Central and Southern Plains through the first half of April. Regarding the war with Iran, President Trump has set a Tuesday evening deadline for Iran to reopen the Strait of Hormuz or face strikes against energy and other infrastructure such as bridges. Iran on Monday rejected the latest U.S. ceasefire proposal, suggesting the two sides are still far apart on terms, although President Trump did call the Iranian counterproposal a "significant step." Oil futures held just above Thursday's elevated levels as traders await the next development. Equity markets rose marginally to begin the week on optimism for further peace talks.
LIVESTOCK:
Live cattle futures continued to show modest to strong gains Monday morning, with spot April contracts leading the market higher with an additional $1.80 per cwt rally following the weekend break. Pressure in nearby feeder cattle trade started to limit early-week buyer support in other live cattle trade, with prices generally 10 to 30 cents per cwt higher during the remaining 2026 contract months. Despite the lack of aggressive market growth in live cattle contracts, the sharp gains seen last week have continued to keep the cattle market bullish, allowing for increased focus on additional tight supplies, as well as the potential that even wholesale beef values near $400 per cwt have not yet shown signs of beef demand slowing in domestic markets. Pressure in the feeder cattle trade will continue to be monitored through Monday and the remainder of the week, but traders are closely focusing on early week movements in beef values. The announcement over the weekend that JBS workers in the Greeley, Colorado, plant plan to return to work on Tuesday after striking for the past three weeks. This will help to create stability in processing schedules and increase overall beef flow through the entire domestic system, although it may not create significant and abrupt price changes to the market at this point. Cash cattle markets remain quiet Monday morning, with both sides assessing last week's movement. Show list distribution and inventory taking is likely to be the main order of business, with any significant activity likely to be pushed off until the last half of the week.
Feeder cattle contracts showed signs of weakness Monday morning, with firm triple-digit losses seen in spot April contracts through morning trade. Mixed trade was seen through the rest of the complex Monday, with traders slowly backing away from initial losses but still unwilling to actively move back into the buying side of the market fully. The aggressive market surge last week was impressive to say the least, as traders continue to focus on cattle numbers and long-term beef supplies tightening in the coming weeks and months. But the upward surge has caused traders to take a breather over the holiday weekend, allowing for some market positioning and profit-taking to develop in early week trade. Even with the current market pullback, prices are still fundamentally and technically strong, which may make it difficult to sustain a longer-term price pullback without additional market news or outside market factors disrupting the bullish tone already established within the cattle complex
Lean hog contracts were the bright spot as traders returned from the Easter weekend break. While lean hog futures remained subdued last week, cattle futures posted an aggressive market rally, and buyers have quickly moved back into the market, focusing on regaining market support and price firmness through the entire lean hog complex. The morning rally in May through August contracts did not push most of these contracts back to the 40-day moving average, where prices have traded below this level for nearly a month. Continued optimism surrounding pork demand growth over the coming weeks and months, as well as spill-over support from the aggressive gains in beef values, is helping to stimulate buyer activity in most nearby lean hog trade as traders return from the holiday break and focus on the rest of the spring and summer markets. With holiday packer scheduled subdued surrounding the weekend breaks, packer runs are expected to still remain significantly lighter than a normal weekday run, but schedules should get back to normal pace Tuesday and focus on regular pork movement over the upcoming weeks.