Hog Futures Plummet on Over Supply Concerns

Hog futures started the week sharply lower as traders reckoned with growing supplies of pork. Demand for pork has been strong this year, but concerns about oversupply have weighed down prices in recent days. Observers say the immediate catalyst was a downturn in pork belly prices, which have recently traded at record highs. Cattle futures were mixed. Analysts say traders were consolidating their positions after prices fell last week on the back of lower cash prices. Similar concerns about oversupply are dogging the cattle market.

October lean hogs fell 145 to 64.67, December dropped 147 to 59.85.

October live cattle fell 5 to $105, December gained 20 to $108, and September feeders fell 87 to $139.

Grain and soybean futures fell after weekend rain eased concerns about crop stress in the western Midwest.

Rain fell in parts of key crop-growing states like Iowa, Illinois and Missouri, and is expected to continue in western areas early this week. That should help improve moisture for corn and soybean growth.  That weighed down prices overnight and on Monday, as traders bet that better growing conditions would mean larger supplies at harvest time. Wheat, meanwhile, led losses, pressured by concerns about larger Russian grain supplies.

September soybean futures closed 5 lower at $9.32, September corn fell 3 to $3.49, September Chicago wheat fell 6 ½ to $4.09, and September KC wheat dropped 6 ¾ to $4.07.

Cotton futures started the week on the upswing with the October contract gaining 92 to 68.71, and December gained 28 to 67.56.

Oil futures fell Monday, pulled lower by falling prices for gasoline and diesel as the end of summer driving season approaches.

September crude fell $1.14 to $47.37 a barrel, Gasoline futures settled down 3.99 cents at $1.58 a gallon, and Diesel futures fell 4.92 cents to $1.57 a gallon.

Natural gas futures rallied Monday, following rising spot prices and as investors stepped in to take advantage of last week’s selloff.

September Natural gas rose 6.9 cents to $2.96.

On Wall Street, the S&P 500 ended slightly higher on Monday after two sessions of losses, but simmering tensions between the United States and North Korea kept investors on edge and a drop in oil prices weighed on energy shares.  The Dow gained 29 to 21,703, the Nasdaq closed at 6,213, down 3 and the S&P 500 gained 3 to 2,428.

A native of the Texas Panhandle, Rhonda was born and raised on a cotton farm where she saw cotton farming evolve from ditch irrigation to center pivot irrigation and harvest trailers to modules. After graduating from Texas Tech University, she got her start in radio with KGNC News Talk 710 in Amarillo, Texas.