Wednesday's Closing Futures Prices
Dec. corn closed at $3.43 and 1/4, up 2 and 3/4 cents
Nov. soybeans closed at $9.35, down 5 and 3/4 cents
Oct. soybean meal closed at $329.80, up $2.80
Oct. soybean oil closed at 32.88, down 8 points
Dec. wheat closed at $5.07 and 3/4, up 1 and 1/2 cents
Oct. live cattle closed at $166.10, up 32 cents
Oct. lean hogs closed at $108.12, up 90 cents
Nov. crude oil closed at $87.31, down $1.54
Dec. cotton closed at 64.89, up 32 points
Oct. Class III milk closed at $23.95, up 5 cents
Oct. gold closed at $1,215.30, down $6.40
Dow Jones Industrial Average: 16,994.22, up 274.83 points
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Ag Market News And ReCap
Soybeans were lower on fund and technical selling. The trade’s watching the weather and waiting for some numbers from CONAB Thursday and USDA Friday. Past that – there was nothing fresh, so beans took the path of least resistance. Soybean meal and oil were mixed, mostly lower, basically following beans. According to Reuters, Brazil’s prime soybean and coffee growing areas are expected to be dry through late October.
Corn was higher on short covering and technical buying. Corn’s in pretty much the same state as beans, watching weather and waiting for some fresh fundamental news. USDA’s supply and demand numbers out Friday are expected to be bearish. Ethanol futures were higher. The EIA reports ethanol production for the week ending October 3 was 901,000 barrels, up 2.27% on the week and nearly 4% on the year. Ethanol stocks were down slightly from a week ago, but up sharply from a year ago at 18.651 million barrels.
The wheat complex was mixed. Wheat has had a solid rally this week, but that may have run out of steam, at least for the time being. Spring harvest and winter planting are right around average and there’s no real fresh news for wheat either. South Korea did buy a small amount of U.S. milling wheat, 25,600 tons, along with 81,000 tons from Australia and 26,200 tons from Canada. In sell-buy-sell trade, Japan picked up 5,500 tons of optional origin feed wheat.
Packer inquiry seemed to be nonexistent with bids and asking prices on the cattle still not well defined. A few showlists have been priced around 165.00 to 166.00 in the South and 255.00 to 260.00 in the North. Significant trade volume could be delayed until Thursday or Friday. The kill totaled 113,000 head, 1,000 smaller than a week ago and 11,000 smaller than last year.
Boxed beef cutout values are higher on fairly good demand and light to moderate offerings. Choice boxed beef up 2.67 at 246.55, and select was 2.22 higher at 234.48.
Chicago Mercantile Exchange live cattle contracts settled 20 to 127 higher after suffering losses earlier in the session. Traders were focused on the aggressive boxed beef market at midday. Technical buying was the main feature as prices once again exceeded all time record highs. October settled .32 higher at 166.10 and December was up .20 at 168.05.
Feeder cattle ended the session 35 to 85 points higher after bouncing higher and lower through much of the session. Increased support from the live cattle market worked to draw increased interest and trade activity back into the feeder complex. Traders seemed to be cautious as they concentrated their attention on short-term and long-term market signals, which kept some on the fence and unwilling to stake a significant position. October settled .85 higher at 242.32, and November was up .50 at 242.92.
Feeder cattle receipts at the Philip Livestock Auction at Philip, South Dakota totaled 6527 head. Compared to last week feeder steers over 850 pounds were 5.00 to 10.00 higher. Feeder heifers over 800 pounds were 8.00 to 10.00 higher. Other classes of feeders were not well compared. There was very good demand for several long strings of feeder steers and heifers and many part loads and packages of steers and heifers, and tested open heifers which all sold on a very strong and active market. Feeder steers medium and large 1 averaging 570 pounds brought 291.87 per hundredweight. 576 pound heifers averaged 263.99.
Lean hogs settled 20 to 90 points higher. Strong near term gains redeveloped in the October and December contracts but ended off the triple digit gains seen earlier in the session. The interest in the complex despite lower cash and pork values drew on the expectation tight supplies may continue in the short term. October settled .90 higher at 108.12, and December was up .62 at 95.17.
There was moderate hog market activity with moderate demand. Iowa/Minnesota direct trade barrows and gilts closed .29 higher at 108.23, the West was up .27 at 108.18, and there was no price comparison in the East at 102.84. Missouri direct base carcass meat price was steady at 96.00 to 102.00. Barrows and gilts at Midwest markets closed 1.00 lower to 2.00 higher from 74.00 to 82.00.
Pork trading was down .22 at 123.53 FOB plant, with only ribs and bellies higher.
Pork exports faltered in August, checked by the Russian ban, softer demand out of China, and significant strength in the dollar.
The Wednesday hog kill was estimated at 426,000 head, 2,000 more than last week but, down 6,000 from last year.
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