Soybeans Hold Support, Livestock Leads Early-Week Rebound

Soybeans are seeing light profit-taking after a 35-cent rally from last week’s lows as farmers move to price November basis contracts ahead of futures expiration. Basis and processor bids have improved with harvest winding down, offering better short-term marketing windows.

The soybean chart remains constructive, with the November contract closing above $10.30 on renewed optimism for a U.S.–China trade deal later this month when the presidents meet in South Korea. For the market to keep moving higher, we’ll need confirmation of new U.S. soybean sales to China to break their unofficial boycott.

In grains, corn and wheat are both trading lower as strength in the U.S. Dollar Index and another increase in Russian wheat output from IKAR pressure the markets. December corn is encountering technical resistance near $4.25, prompting some profit-taking after last week’s rally.

Cattle futures are recovering after Friday’s sell-off sparked by talk of lowering beef prices. The market has largely absorbed that news and is again focusing on stronger cash trade, with the 5-Area Weighted Average steer price near $239.82. Feeder cattle prices at auctions remain red-hot, with the cash index last printed at $376.51.

Lean hog futures are attempting to stabilize after the December contract held support near $82.00 on Monday. Following nearly fifteen consecutive down sessions, the market is oversold and primed for a round of short-covering.