By Gary Wulf

  Of DOW JONES NEWSWIRES


  CENTRAL CITY, Neb. (Dow Jones)--U.S. cash grain prices weakened Monday,
pressured by a general downturn in both futures and basis.

  MaxYield commodity trade advisor Karl Setzer attributed the downturn to "an
increase in hedge-pressure from elevated country movement."

  National-average domestic basis had declined for all grains - except soft red
winter wheat - entering the trading session, with additional declines of 2-4
cents seen in HRS wheat/soybean basis at the export level, as well.

  "While USDA Friday announced the sale of 6 million bushels [of U.S. soybeans]
to China, two of those three cargoes were for new-crop," pointed out Farm
Futures market analyst Bryce Knorr.

  Although spot soybean contracts managed to retain a 2-cent gain, other U.S.
grain futures retreated late Monday, closing with net losses of 1-5 cents.

  "Corn cannot go up in a vacuum. Feed and ethanol margins are very thin, if
black at all," said Linn Group analyst Jim Riley. "Corn has to be accompanied
with, or led by ethanol/hogs/cattle, if this market is going to extend."

  Industry/government projections indicate that the U.S. hog and fed cattle
herds have each contracted by approximately 5% during the past year.


  Crop Weather


  A powerful low-pressure system centered over western Nebraska was producing
strong winds across the Great Plains Monday, plus snow in parts of Wyoming and
southern Montana, and scattered rains in the remainder of the northern Plains.

  "Significant flooding is underway along the Red River and several tributaries
in eastern North Dakota/western Minnesota," said USDA agricultural
meteorologist Brad Rippey.

  An extensive area of rain was also falling in the Mississippi Valley and
upper Midwest Monday, while cool dry weather dominated elsewhere.

  "A blizzard warning is in effect from eastern Wyoming and western Nebraska
northward into the western Dakotas," through Tuesday, said Rippey. "Meanwhile,
additional rain in the Red River Valley will increase the risk of near-record
to record flooding."

  Elsewhere, a widespread outbreak of severe thunderstorms, with large hail and
damaging winds, can be expected from the eastern Plains into the Mississippi
Valley.