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Corn Futures Prices Firm On Chinese Purchases.

Wednesday's Closing Grain and Livestock Futures
Dec. corn closed at $4.43 and 1/2, up 1 and 3/4 cents
Nov. soybeans closed at $12.87 and 3/4, down 1 cent
Oct. soybean meal closed at $425.20, down $3.50
Oct. soybean oil closed at 40.55, up 35 points
Dec. wheat closed at $6.90 and 1/2, down 3 cents
Oct. live cattle closed at $128.00, downn 27 cents
Oct. lean hogs closed at $89.82, down $1.40
Nov. crude oil closed at $101.61, down $1.88
Dec. cotton closed at 83.20, down 49 points
Oct. Class III milk closed at $18.14, up 4 cents
Oct. gold closed at $1,306.90, down $17.30
Dow Jones Industrial Average: 14,802.98, up 26.45 points

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

Market News and ReCap 

Soybeans were modestly lower on fund and technical selling, along with the higher dollar and lower crude oil. The near term harvest weather continues to generally look good for most of the Midwest and anecdotal yields are variable. The tight old crop supply and uncertainty about this year’s crop did limit losses and did provide support at times, but not enough to help beans finish in the black. Soybean meal was lower and bean oil was higher on the adjustment of product spreads. CONAB projects Brazil’s 2013/14 soybean crop at 87.5 million to 89 million tons.

Corn was higher on technical and fund buying. Ethanol demand looks good, China bought around 400,000 tons of U.S. corn recently, and farmers are reluctant to sell with prices around current levels. Past that – the trade’s watching harvest activity with generally good yields and the trade’s expecting a record crop. According to CONAB, Brazil’s combined 2013/14 corn crop could hit 78.5 million to 79 million tons.

The wheat complex was mostly lower on technical and fund selling, in addition to the higher dollar. Planting weather looks pretty good for both the hard red and the soft red winter crop. France has raised its soft wheat production estimate to 36.9 million tons and near term forecasts have improved a little for Russia and Ukraine, which should help planting, but there may be a shift back to wetter, cooler conditions this weekend. Ukraine’s Ag Ministry adds farmers have harvested 77% of the expected acreage, with the running total at 41.231 million tons. Japan canceled a sell-buy-sell tender for 180,000 tons of feed wheat and 200,000 tons of feed barley due to a lack of either buyers or sellers.

Cattle country remained at a standstill on Wednesday afternoon with no bids reported and asking prices not well defined. Some showlists are said to be priced around 128.00 to 129.00 in the South, and 200.00 to 202.00 in the North. While we could see some trade on Thursday it is more likely that significant feedlot action will be delayed until Friday. DTN reports they are not hearing much from the wholesale beef trade, but assume that it continues to hold a steady to firm undertone. The projected slaughter for Wednesday was 122,000 head.

Live cattle contracts on the Chicago Mercantile Exchange settled 15 to 47 points lower. The expected stability in the market was disrupted by the lack of buyer interest stepping into the market and allowed slow but steady pressure to develop across the entire livestock market. Firmness in corn prices as well as general pressure in most other markets continued to limit buyers from stepping off of the sidelines on Wednesday. Very little new fundamental market information is available for traders to use, which led to the renewed market protection. October settled .27 lower at 128.00 and December was down .37 at 131.95.

Feeder cattle ended the session 22 points higher to 25 lower. Firm buyer interest in corn prices and widespread moderate weakness in live cattle contracts added pressure to the feeder cattle trade through the close. Buyer interest was hard to find. October settled .25 lower at 164.55, and November was up .05 at 166.37.

Feeder cattle receipts at the Ozarks Regional Stockyards at West Plains, Missouri totaled 3339 head on Tuesday. Compared to last week, feeder steers weighing less than 550 pounds were steady with the 600 to 850 pound steers 8.00 to 10.00 higher. Feeder heifers weighing less than 700 pounds were steady, with the 700-850 weights 10.00 higher. The supply was moderate with several large packages of high quality steers and heifers. Demand was very good especially for heavier weight, weaned, vaccinated steers and heifers. Feeder steers, medium and large 1 weighing 600 to 700 pounds traded from 153.00 to 167.50. 6 to 7 weight heifers brought 148.00 to 158.00.

Barrows and gilts at Peoria closed 1.00 lower from 58.00 to 60.00 live; sows were 2.00 to 3.00 lower from 65.00 to 70.00. Red Oak, Iowa and Zumbrota, Minnesota reported a steady hog market at 61.00. The Missouri direct base carcass meat price was steady from 83.00 to 85.00, and the cash sow market was steady to 2.00 lower from 60.00 to 70.00.

One positive impact of the government shutdown has involved the weakening of the U.S. dollars against foreign currencies. Such a shift in exchange rates should be supportive of U.S. meat exports.

Early estimates of the Saturday hog kill are 150,000 or better. This will probably be the first “big” weekend slaughter of the fall, the first of many.

Lean hogs settled 20 to 167 points in the red. Front month futures were lightly traded with most of the focus now on the December contract. The general tone of the market remained weak as traders backed away from previous market gains earlier in the week. Trade volume was light through the session. October settled 1.40 lower at 89.82, and December was down 1.67 at 86.52.

 

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