August 24, 2015 Grain prices rebounded off of lows after Monday morning's widespread selling panic.

Monday, August 24, 2015
***** Corn future reverse higher to post gains of 3 to 3 1/2 cents; soybeans finish lower by 15 1/4 to 17; Chicago wheat climbs 3 3/4 to 5 1/4. *****

   It was a wild session for the grains on Monday. Futures were broadly lower overnight as global economy worries triggered a broad market selloff. Grains rebounded off their intraday lows and corn and soybeans were able to make a surprising round of gains.
   China was at the center of the mess. The Chinese stock market posted its biggest loss in eight years as equity indexes in Europe dropped to their lowest levels since the global recession in 2008/2009. Fear spread to U.S. stocks, with the Dow Jones opening more than 1,000 points lower. 
   Investors wanted nothing to do with commodities early on in the day. A 'risk-off' trade sparked liquidation across all major commodity classes. Oil was hit the hardest, sending WTI spot prices below $45 for the first time since 2009. Gold served as a slight hedge on the equity rout, but still posted losses for the day. 
   The grain production fundamentals were on the back burner today. Weather is mostly a negative for crop prices. The two-week outlook is dry and cool for now. Weather may be benign through harvest, but traders are still betting that the USDA will come down on their corn and soybean yield estimates in future reports. 
   This afternoon's Crop Progress report will get some attention when the market starts trading again. Condition ratings for corn and soybeans held unchanged at 69 and 63 percent good or excellent, respectively. Many analysts had expected a one point improvement on ratings for both crops. 

***** Short-covering helps the hogs climb higher by the daily trading limit; live cattle finish $1.275 to $2.10 lower as October feeders drop $4.65. *****

   Hog futures were up the limit after a weaker start. Buyers entered the market to take profit on a futures board that had reached down into oversold territory. Cash prices were moderately higher on the day.
   Cattle futures were down hard as the bulls played weak defense against the outside market negativity. Beef prices still maintain a steep premium over other meats and are expected to find some pushback from demand now that the summer grilling season is wrapping up.