LEAN HOGS on the CME closed mixed on Monday with nearbys down and deferreds up. The JULY’10LH contract closed off $0.500/cwt at $78.125/cwt. AUG’10LH futures finished at $79.450/cwt; down $0.575/cwt. The FEB’11LH contract closed up $0.325/cwt at $74.550/cwt. Technical selling was noted in nearby contracts as non-commercials migrated positions into later months. Futures were pressured by weaker cash prices, unwinding bear spreads, and a stronger U.S. dollar. A stronger dollar is seen as limiting exports. In international news swine fever in Cameroon has caused the government there to destroy 10,450 pigs over the last two weeks. The state-run news agency reported a disease break in May.

CORN futures on the Chicago Board of Trade (CBOT) closed off on Monday. The JULY’10 contract closed at $3.712/bu; down 4.0 ¢ /bu. DEC’10 corn futures closed off 3.5 ¢ /bu at $3.916/bu. After the recent tremendous run-up in prices the contra-seasonal rally may be slowing. Good growing weather, lower crude oil prices, and a stronger U.S. dollar took the wind out of corn futures. Spreading and commercial selling was noted. According to floor sources traders will not push prices further unless a weather scare drives it. “The momentum seems to be running out of steam.” USDA put corn-inspected-for-export at 34.519 mi bu. Funds sold over 6,000 lots. It would be a good idea to take advantage of these higher prices while they last.

SOYBEAN futures on the Chicago Board of Trade (CBOT) closed mixed on Monday with near-bys gainers and deferred prices moving down. The JULY’10 soybean contract closed at $10.316/bu; up 6.25 ¢ /bu. SEP’10 soybean futures finished even 0.0 ¢ /bu at $9.664/bu. NOV’10 futures closed at $9.510/bu, down 2.25 ¢ /bu. Old crop sales were encouraged by sluggish farmer selling, higher cash markets, and rumors that China would be buying more U.S. soybeans. New crop prices suffered from pressure from overall good weather. Weather markets are in the making now. Funds bought 3,000 contracts. Hopefully 80% of the 2010 crop has been sold.

WHEAT futures in Chicago (CBOT) closed down on Monday. The JULY’10 wheat contract closed at $5.212/bu; down 2.25 ¢ /bu. JULY’11 futures finished down 2.5 ¢ /bu at $6.124/bu. After a good run in prices an absence of bullish news in Friday’s USDA WASDE report proved bearish for wheat showing growing stocks amid already large world inventories. Corn & wheat spreading was noted among several floor sources. Funds sold over 2,000 contracts. It would be a great idea to get to 60% sold in the 2011 crop.