Cattle futures tumbled as traders questioned whether demand will be able to keep pace with rising beef prices. Hog contracts were mixed.
Swelling supplies of pork and beef, and concerns that export and domestic demand could falter as prices climb, sent live cattle futures prices sharply lower Monday, the second such decline in three trading sessions.
December live cattle contracts fell 197 to $125, February declined 110 to $130, and November feeders dropped 72 to $160
December lean hogs fell 47 to 64.62, and February gained 25 to 72.22.
Soybean futures rebounded Monday as buyers returned to the market ahead of a monthly crop report expected to show smaller U.S. yields for the oilseeds. Wheat rose while corn slipped. Soybeans recovered from a selloff in the market on Friday, bolstered by light buying in advance of a government report due out this week that’s expected to trim federal estimates for the U.S. crop. Solid demand signals also buoyed the soybean market. Corn closed slightly lower, despite some positive demand signals.
November Soybeans rose 7 to $9.84, December corn shed 1/4 to $3.48, December Chicago wheat gained 5 to $4.30, and December KC Wheat gained 3 ¼ to $4.30.
Cotton futures rebounded slightly from Fridays’ fall, with December gaining 13 to 68.85, and March jumping 33 to 69.10.
Oil futures surged to fresh two-year highs Monday on rising tensions in the Middle East following a wave of arrests in Saudi Arabia and a missile attack on Riyadh by Yemeni rebels. December crude futures recently rose $1.39 to $57.03 a barrel, Gasoline futures rose 3.73 cents to $1.83 a gallon, and Diesel futures rose 3.93 cents to $1.92 a gallon.
Natural-gas futures surged to a seven-week high Monday, topping the $3 mark as colder weather appeared set to boost demand.
December nat gas rose 15 cents to $3.13.
On Wall Street, stocks climbed to record highs on Monday, helped by optimism about merger activity and as investors bet that a Republican plan to cut corporate taxes would bolster earnings. The Dow gained 9 to 23,548, the Nasdaq closed at 6,786, up 22 and the S&P 500 gained 3 to 2,591.