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Corn and Soybean Futures Prices Continue Lower.

Tuesday's Closing Grain and Livestock Futures
Dec. corn closed at $4.39, down 2 and 1/2 cents
Nov. soybeans closed at $12.68, down 14 and 3/4 cents
Oct. soybean meal closed at $408.50, down $1.40
Oct. soybean oil closed at 40.01, down 82 points
Dec. wheat closed at $6.81 and 1/4, up 2 and 3/4 cents
Oct. live cattle closed at $127.25, down 60 cents
Oct. lean hogs closed at $90.92, down $1.05
Nov. crude oil closed at $102.04, down 29 cents
Dec. cotton closed at 86.60, down 61 points
Oct. Class III milk closed at $18.13, up 13 cents
Oct. gold closed at $1,286.00, down $40.50
Dow Jones Industrial Average: 15,191.70, up 62.03 points

For additional futures prices and charts click http://www.farms.com/markets

Market News and ReCap

Soybeans hit new nineteen month lows on fund and commercial selling. Monday’s USDA quarterly stocks figure and increased 2012 crop number continue to hang over the market and harvest weather looks good for the first half of the week. Past that – the commodity and broader markets are watching developments in Washington DC very closely. Soybean meal and oil were lower, following the lead of beans. October 1 marks the start of the 2013/14 marketing year for soybean products. FC Stone estimates 2013 U.S. soybean production at 3.163 billion bushels, with an average yield of 41.4 bushels per acre. According to Reuters, soybean planting in Brazil’s top bean growing state of Mato Grosso is at 0.8%, with the overall pace at 1.7%, slightly slower than average as some farmers wait for rain. China bought 113,000 tons of 2013/14 U.S. soybeans, while South Korea’s Feed Leaders’ Committee purchased 55,000 tons of U.S. bean meal and 25,000 tons from India.

Corn was lower on commercial and fund selling. Quarterly stocks were a continued bearish factor for corn as well, implying, among other things, slower than expected feed demand. The trade’s expecting a record crop this year and harvest activity is going well, pushing contracts to new lows for the move. Ethanol futures were lower. FC Stone projects 2013 U.S. corn production at 14.150 billion bushels, with an average yield of 158.7 bushels per acre. USDA’s scheduled to release updated production, supply, and demand numbers October 11, but that may get delayed by the current government shutdown.

The wheat complex was mostly higher on commercial buying and the lower dollar, with Minneapolis leading the way up. There’s more talk of new export demand and continued planting problems in parts of Russia and Ukraine. Stateside, the spring wheat harvest is drawing to a finish and rainfall in the Plains will help the emerging winter crop. Bangladesh is tendering for 50,000 tons of optional origin wheat.

 

 

 

 

 

 

The cash cattle trade was typically quiet on Tuesday afternoon with significant trade probably postponed until Thursday or Friday. A few bids were reported in Kansas and Texas at 123.00. Suggested asking prices are around 128.00 to 129.00 in the South, and 203.00 to 205.00 in the North. Due to the government shutdown no information is available regarding the boxed beef or pork value. It will be interesting to see how this information blackout will affect the futures market in the days ahead.

Live cattle contracts on the Chicago Mercantile Exchange settled unchanged to 60 points lower. The futures trade remained sluggish for much of the session with moderate losses. The October futures led the market lower. There is a lot of uncertainty in the market as just how commercial traders will be able to make accurate market decisions with the absence of the cash market reports released by the USDA. October settled .60 lower at 127.25, and December was down .07 at 131.90.

Feeder cattle contracts ended the day 30 to 137 points higher. The trade bounced higher and lower through the morning trade. Although there was pressure in the rest of the livestock markets, light buyer support developed due to the pressure in the grain markets. Traders looked past the inability to gather cash or meat market information that comes from USDA and focused on the pressure in the corn and soybean markets. October settled .30 higher at 164.40, and November was up .85 at 166.05.

Feeder cattle receipts at the Joplin Regional Stockyards totaled 4270 head on Monday. Compared to last week, steer calves were steady to 3.00 higher, heifer calves weighing less than 550 pounds were 8.00 to 12.00 higher, heifer calves over 550 pounds and yearlings steady to 2.00 higher. Demand was good and supply was moderate. There were more buyers in the seats than a week ago, and especially more aggressive for the heifer calves. Feeder steers medium and large 1 averaging 716 pounds traded at 165.15 per hundredweight. 718 pound heifers averaged 149.55.

Lean hog futures settled 20 to 105 points lower as traders tried to grapple with the lack of cash market information which is typically delivered by USDA. October futures moved off session lows but were unable to draw additional buyer activity back into the market. This could create uncertainty in both commercial and noncommercial trade over the coming days if the shutdown continues. October settled 1.05 lower at 90.92, and December was down .72 at 85.90.

Direct hog trade reports are not available due to the government shutdown. Missouri direct base carcass meat price closed steady from 86.00 to 88.00. At Peoria, Illinois on a live basis, barrows and gilts closed steady from 61.00 to 63.00. Red Oak, Iowa was 1.00 lower at 62.00, and Zumbrota, Minnesota was 1.00 lower at 60.00. The sow market was steady to 1.00 lower at terminals from 71.00 to 82.00.

Although cash reporters called hog sales lower Monday, negotiated receipts were generally light. This could be the start of a frequent marketing pattern seen this fall, one where greater packer spending eventually surfaces once the inadequacy of earlier shopping becomes obvious.

 

 

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