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Corn & Soybean Futures Collapse On Harvest Pressure.

Thursday's Closing Grain + LIvestock Futures Prices

Sep. corn closed at $3.35 and 3/4, down 5 and 1/2 cents
Sep. soybeans closed at $10.64 and 1/4, down 16 and 1/2 cents
Sep. soybean meal closed at $431.40, down $15.80
Sep. soybean oil closed at 31.97, up 24 points
Sep. wheat closed at $5.25 and 1/4, up 1 and 3/4 cents
Oct. live cattle closed at $157.05, up $1.62
Oct. lean hogs closed at $102.65, up $1.55
Oct. crude oil closed at $94.45, down $1.09
Dec. cotton closed at 65.45, down 51 points
Sep. Class III milk closed at $24.22, up 9 cents
Sep. gold closed at $1,265.10, down $3.80
Dow Jones Industrial Average: 17,069.58, down 8.70 points

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

Ag Market News and Commodity Comments 

Another day of lower soybean and corn futures prices as the prospects of huge crops drive the market lower.

Soybeans were lower on commercial and speculative selling, with new crop at new contract lows. Condition ratings are at their highest levels in about 20 years and the trade is expecting a record crop. Weather looks good, but there’s a small chance for an early frost next week in parts of the upper Midwest. Soybean meal was lower and bean oil was higher on the adjustment of product spreads.

Corn was lower on commercial and speculative selling, also hitting new contract lows in new crop. Corn’s also looking at very good condition ratings and crop weather, while expecting a record crop this year. Unknown destinations did buy 120,000 tons of new crop U.S. corn, but past that, there was no real fresh supportive news. Ethanol futures were lower. The European Central Bank lowered interest rates, supporting the dollar and pressuring the Euro, which could be bearish for U.S. corn, and other commodities, abroad.

The wheat complex was mixed. The spring wheat harvest is behind average and there are some quality concerns, but the fundamentals are bearish, mainly due to the large world supply. Still, contracts are oversold and the trade does expect at least some new demand due to a combination of European crop quality woes and uncertainty in Ukraine. Japan bought 110,000 tons of milling wheat (66,000 tons U.S., 24,000 tons Australian, and 20,000 tons Canadian) and South Korea picked up 26,100 tons of U.S. milling wheat. Egypt purchased 120,000 tons of wheat, half from Romania, half from France.

Feedlot country was generally quiet Thursday after a limited round of cash business in the morning. Dressed sales in Iowa and Nebraska were reported to be $5.00 higher than last week at 250.00 dressed basis. The South had no reported sales, but private sources reported bids in Kansas at 155.00 live. Optimistic feedlot operators have raised their asking prices to 160.00 live and 250.00 to 252.00 plus dressed. The kill totaled 119,000 head, 5,000 more than last week, but 8,000 less than last year.

Boxed beef cutout values were firm to higher on moderate to fairly good demand and heavy offerings. Choice beef was up .54 at 248.12, and select closed .75 higher at 234.69.

Chicago Mercantile Exchange live cattle contracts settled 162 higher to 147 lower. At one point during the session front month futures were extremely close to daily trading limits. The support was focused on expected firming demand through early September and the need for packers to gain additional market-ready cattle heading into fall. Markets closed below the contract highs on the lack of consistency through the market that created market uncertainty. October was 1.62 higher at 157.05, and December was up .50 at 158.50.

Feeder cattle ended the session 110 points higher to 52 lower. Feeders traded mixed in a moderate range, but compared to moves in the rest of the livestock markets, the feeder cattle complex appeared calm. The lead month was supported by the gains in October live cattle futures while deferred issues were weaker. The continued strong pressure in grains had only limited impact on feeder cattle prices. September settled 1.10 higher at 223.80 and October was up .22 at 222.00.

Feeder cattle receipts at the Bassett Livestock Auction, Bassett, Nebraska totaled 1485 head on Wednesday. There has not been a recent test of the market for an accurate comparison, so a trend was not given. Demand was very good for all offerings. 300 head of feeder steers with an average weight of 928 pounds averaged 224.76 per hundredweight. 177 heifers weighing 907 pounds averaged 207.53 at Bassett.

Lean hogs settled 155 points higher to 282 lower with only October in the black. The nearby support concentrated on the firming cash values and the expectation short term demand will remain firm during early September. The concern that growing supplies through early 2015 could continue to offset any short term demand support kept trading under pressure. October settled 1.55 higher at 102.65, and December was .65 lower at 92.45.

Barrows and gilts in the Iowa/Minnesota direct trade closed 2.87 higher at 97.03 weighted average on a carcass basis, Western hogs were up 2.61 at 96.76, and the East was 1.03 higher at 92.43. Missouri direct base carcass meat price was steady at 86.00. Midwest hogs were steady to 4.00 higher from 59.00 to 74.00 live.

The pork carcass cutout value was 1.89 higher FOB plant at 103.48.

For the week ending August 30, Iowa barrows and gilts averaged 280.6 pounds, 1.5 pounds lighter than the week before and only 10.4 pounds heavier than 2013.

Hog slaughter was estimated at 405,000 head, 5,000 less than last week, and down 28,000 from last year.

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