Investors continued to pile into the hog market on Monday on the back of speculative trades ahead of the front-month contract’s next-day expiry while the rest of the complex succumbed to selling pressure. Packers serving robust demand and decent margins helped drive up futures.
February hogs gained 20 at 74.75, while April shed 137 at 69.70.
Live cattle futures carried on from where they left off Friday, with the April contract losing 47 at $111, June fell 62 to $112, and March feeders fell 25 to $121.
Grain futures extended gains Monday, buoyed by fresh buying and short-covering by investors as hopes grew for a slow rebalancing of world supplies. Soybeans fell.
Corn and wheat futures climbed to fresh seven-month highs as commodity funds remained buyers in the corn market and large investors continued to exit bearish positions on wheat. Corn benefited from forecasts for smaller U.S. and world stockpiles this season, as well as speculation that U.S. farmers would plant fewer acres this year, and Soybeans stumbled after notching a 3-week high last week, pressured by decent weather in South America and a swift harvest pace in Brazil.
March Chicago wheat gained 3 1/4 to $4.52, March KC wheat gained 6 ¼ to $4.66, March corn added 1 to $3.75, and March soybeans shed 4 3/4 to $10.54.
Cotton futures continued their steady climb Monday with the March contract gaining 79 to 76.61, and May gaining 112 to 78.21.
Oil futures fell on Monday, as the market shifted its focus from output cuts among some OPEC members to other major producers.
March crude settled down 93 cents to $52.93 a barrel, Gasoline futures closed down 5 cents to $1.54 a gallon, and diesel futures fell 4 cents to $1.62 a gallon.
Natural gas futures fell to the lowest level in 12 weeks Monday, as a warm weather outlook for February weighed on market sentiment.
March nat gas dropped 9 cents to $2.94.
On Wall Street, U.S. equity indexes hit record highs on Monday, with the benchmark S&P 500’s market value topping $20 trillion as investors bet tax cuts promised by President Donald Trump would boost the economy. The Dow gained 142 to 20,412, the Nasdaq closed at 5,763, up almost 30 and the S&P 500 gained 12 to 2,328.