Closing Grain & Livestock Futures Prices
Sep. corn closed at $3.52 and 1/2, down 4 and 1/2 cents
Aug. soybeans closed at $12.15, down 9 and 1/2 cents
Aug. soybean meal closed at $387.50, down $3.80
Aug. soybean oil closed at 35.45, down 66 points
Sep. wheat closed at $5.34 and 1/4, up 4 cents
Aug. live cattle closed at $157.30, down 62 cents
Aug. lean hogs closed at $118.02, unchanged
Sep. crude oil closed at $97.88, down 29 cents
Oct. cotton closed at 62.49, up 40 points
Aug. Class III milk closed at $21.47, up 3 cents
Aug. gold closed at $1,293.60, up $12.30
Dow Jones Industrial Average: 16,493.37, down 69.93 points
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Agri Market News & Comments
A light to moderate cattle trade was evident in most areas with some business about steady with last week at 162.00 to 164.00 live and 255.00 to 258.00 dressed. By mid-afternoon trade volume totals were relatively small and if they do not increase through the day packers will go into next week extremely short bought. The weekly kill totaled 574,000 head, 3,000 more than last week, but 48,000 smaller than last year.
Boxed beef cutout values were lower on light demand and offerings. Choice beef is down .53 at 263.13 and select is 2.48 lower at 258.12.
Chicago Mercantile Exchange live cattle contracts settled 32 to 167 lower. Contracts started the day lower as nervous traders continue to anticipate discouraging news around the theoretical corner. Nearby contracts bounced off session lows, cheered somewhat by steady packer spending in parts of feedlot country. August settled .62 lower at 157.30 and October was down 1.32 at 156.00.
Feeder cattle ended the session 40 to 142 points lower on long liquidation as well as spot August more than $4.00 below the last cash index calculated by the Chicago Mercantile Exchange. Clearly the feeder board seems ready to end the week in in great contrast to the bullish action seen Monday through Wednesday. August settled .40 lower at 220.27, and September was down 1.30 at 219.90.
Feeder cattle receipts at Missouri auctions this week totaled 19,309 head. Compared to last week, feeder calves sold steady to 5.00 higher, with spots of 10.00 higher and yearling feeders sold 5.00 to 10.00 higher. The feeder supply was light to moderate. Demand for feeders was very good. Feeder steers medium and large 1 averaging 623 pounds traded at 254.99 per hundredweight. 621 pound heifers averaged 230.96.
Lean hogs settled mostly unchanged to 75 higher. Nearby contracts were unchanged to modestly lower, lightly pressured by bear spreading strategies. Deferred contracts were moderately higher, supported by late week profit taking and technical buying prompted by oversold charts. August settled unchanged at 118.02, and October was down .35 at 102.82.
Pork trading was down 1.71 at 127.32 FOB plant.
Though the cash hog trade has been sloppy and soft this past week, the case can be made that we are pulling numbers forward, aggressive marketing that could mean that late summer/early fall numbers will be more manageable than imagined.
The weekly hog kill was estimated at 1,867,000 head, 5,000 more than last week but down 160,000 from last year.
Soybeans were lower on fund and speculative selling. Forecasts for the coming week look good, with non-threatening temperatures and increased rainfall. The crop’s doing well and demand is good but, long term fundamentals are bearish. Ahead of USDA’s next production estimate, Linn Group sees beans at 3.849 billion bushels with an average yield of 45.8 bushels per acre and Doane pegs beans at 3.86 billion bushels with an average yield of 45.9 bushels per acre. Soybean meal and oil followed soybeans lower.
Corn was lower on fund and speculative selling. Corn’s also watching the weather, expecting a large crop with the potential for a record average yield. USDA’s first survey-based crop production estimate of the year is out on the 12th. Doane has corn at 14.443 billion bushels with an average yield of 172.3 bushels per acre and Linn Group projects the crop at 14.518 billion bushels with an average yield of 172.8 bushels per acre. Ethanol futures were mixed.
The wheat complex was mostly higher with Kansas City taking the lead on fund and commercial buying. The trade’s talking about increased export demand, but nothing’s confirmed. Specifically, they’re looking at European crop quality and potential delays out of the Black Sea region. There’s additional signs of new commercial demand from Nigeria and Pakistan also bought wheat last week. World crop conditions do look good, outside of some concerns about warm, dry weather in parts of the southern Canadian prairies.