Friday's Closing Futures Prices
Dec. corn closed at $3.23 and 1/4, up 1/2 cent
Nov. soybeans closed at $9.12 and 1/4, down 12 and 1/4 cents
Oct. soybean meal closed at $308.00, down 70 cents
Oct. soybean oil closed at 32.29, down 38 points
Dec. wheat closed at $4.85 and 3/4, up 3 cents
Oct. live cattle closed at $162.40, down 45 cents
Oct. lean hogs closed at $105.60, down $1.17
Nov. crude oil closed at $89.74, down $1.27
Dec. cotton closed at 62.47, up 62 points
Oct. Class III milk closed at $24.27, up 24 cents
Oct. gold closed at $1,192.20, down $22.00
Dow Jones Industrial Average: 17,009.69, up 208.64 points
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Ag Market News And ReCap
Soybeans were lower on fund and technical selling. There are some weather concerns, but the trade is continuing to focus on the expected U.S. record crop and projections for increased acreage in South America. In any event, there was no fresh news to end the week. Soybean meal and oil followed beans lower. According to Statistics Canada, canola production is projected at 14.08 million tons, at the low end of pre-report estimates.
Corn was firm on short covering and technical buying, along with spillover from wheat. Corn was watching the weather, particularly that chance for a hard freeze in the near future. The recent rainfall has delayed harvest in some key growing areas and development has been slower than average. USDA’s next set of supply, demand, and production numbers is out on the 10th. Ethanol was mixed.
The wheat complex was higher on commercial and technical buying. That recent rainfall has delayed winter wheat planting and spring wheat harvest. Fundamentally, wheat is bearish, but it’s also oversold on a technical basis and there’s some new commercial interest, particularly for hard varieties. Statistics Canada estimates wheat production at 27.48 million tons, which would be down 10 million on the year. DTN reports Iran bought “about” 400,000 tons of wheat from the European Union.
Cattle trading in the Texas Panhandle and Colorado was at a standstill. In Kansas and Nebraska trading was mostly inactive on very light demand. In the Western Corn Belt trading was limited on light demand. There were a few live sales from 158.00 to 162.00. However, not enough for a market trend in any feeding region. The weekly kill was estimated at 582,000 head, 10,000 above last week, but 57,000 less than last year.
Boxed beef cutout values were steady on choice and lower on select on light to moderate demand and offerings. Choice boxed beef was down .13 at 238.32, and select was .97 lower at 226.36.
Live cattle contracts on the Chicago Mercantile Exchange settled 10 points higher to 72 lower. The live pit drifted lower, pressured by profit taking and uncertainty before the development of the cash trade. DTN reports the weakness seemed insignificant, clearly not substantial enough to challenge the bullish progress seen earlier in the week. October was .45 lower at 162.40, and December was down .55 at 165.87.
Feeder cattle ended mostly 50 to 90 points higher with only front month October in the red. Feeders sold off earlier but came back near the close. Some bulls wanted to take some money off the table before leaving for the weekend. October was .22 lower at 240.87, and November was up .90 at 240.97.
Feeder cattle receipts at Missouri auctions this week totaled 22,753 head. Compared to last week, feeder steers and heifers sold steady to 5.00 higher, with several instances of 5.00 to 10.00 higher on strings of quality weaned feeders. The feeder supply was moderate and made up of mostly calves. Demand remains very good. Nearly all weights and classes of feeders are setting new records or else riding very close to doing so. Feeder steers medium and large 1 averaging 629 pounds traded at 259.17 per hundredweight. 615 pound heifers averaged 241.21.
Lean hogs were mostly 50 to 190 points lower with most of the selling pressure on the first three contract months with October and December ending with triple digit losses. The late week selling seemed to be linked to profit taking and nervousness in the face of seemingly bearish fundamentals. October settled 1.17 lower at 105.60, and December was 1.90 lower at 93.02.
There was slow hog market activity with light to moderate demand on Friday. Barrows and gilts in the Iowa/Minnesota direct trade closed 1.02 lower at 107.66 weighted average on a carcass basis, the West was down .76 at 107.56, and the East ended .52 lower at 102.46. The Missouri direct base carcass meat price was steady from 95.00 to 102.00. Midwest hogs on a live basis were steady to 2.00 higher from 70.00 to 80.00.
The pork carcass value FOB plant was up 1.33 at 123.75. All cuts with the exception of picnics were higher.
Despite a stronger dollar, foreign demand for U.S. pork this fall seems decent. Net export sales last week were up 12% from the previous week and 15% from the prior 4-week average.
The weekly hog kill was estimated at 2,080,000 head, 5,000 less than last week, and 129,000 less than last year.
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