By Midday Monday, Oil Shock and Risk-Off Mood Knock Farm Futures Lower

Overview

• Soybeans turned 6 to 9 cents lower after an overnight pop, even as weekly export inspections reached 1.138 MMT with China the top destination and funds held a large net long while Brazil’s harvest lagged and AgRural cut output to 178 MMT.
• Wheat surrendered part of Friday’s rally with Chicago contracts down about 15 to 16 cents at midday, inspections slowed to 344,272 MT, and CFTC data showed funds sharply reducing CBOT shorts as Saudi Arabia booked 794,000 MT.
• Corn slipped 3 to 6 cents as weekly shipments totaled 1.858 MMT led by Mexico, managed money trimmed its net short, and Brazil’s first crop reached 36% harvested with second-crop planting at 66% in the center-south.
• Cotton fell 70 to 80 points across front months even with crude oil still higher on the day and the dollar firmer, while ICE certified stocks rose and recent COT data showed a smaller speculative net short.
• Livestock stayed defensive with live cattle slightly lower after Friday’s five-week low and weaker cash, while lean hogs eased despite a firmer pork cutout and a rising CME lean hog index.