Grain Futures Prices Lower After Report

Sep 30, 2014

Tuesday's Closing Grain + Livestock Futures Prices

Dec. corn closed at $3.20 and 3/4, down 5 cents
Nov. soybeans closed at $9.13 and 1/4, down 10 and 1/4 cents
Oct. soybean meal closed at $304.60, down $3.50
Oct. soybean oil closed at 32.27, down 52 points
Dec. wheat closed at $4.77 and 3/4, down 3 and 1/2 cents
Oct. live cattle closed at $160.45, down 50 cents
Oct. lean hogs closed at $107.97, up 65 cents
Nov. crude oil closed at $91.16, down $3.41
Dec. cotton closed at 61.37, down 10 points
Oct. Class III milk closed at $24.06, up 7 cents
Oct. gold closed at $1,210.50, down $7.00
Dow Jones Industrial Average: 17,042.90, down 28.32 points

For more futures prices and charts click

For the Sept 30 USDA Quarterly Grain Stocks Report click

Ag Market News and Commodity Comments:

Soybeans were lower on fund and technical selling. Quarterly stocks were a lot smaller than expected at 92 million bushels, reflecting just how strong demand was last quarter. However, USDA did increase its numbers for last year’s crop and this year’s crop should be a new record. Contracts did try to rally, but couldn’t follow through. Soybean meal and oil followed beans lower. Agroconsult projects Brazil’s soybean crop at 94.8 million tons.

Corn was lower on fund and technical selling. Quarterly corn stocks were a little larger than expected and up 50% from this time last year. In any event, the fundamentals are bearish due to the expected record crop. USDA’s next production estimate is out on the 10th and should factor in at least some of the FSA acreage data. Ethanol futures were mixed.

The wheat complex was lower on fund and technical selling, along with the higher dollar. All wheat and winter wheat production were both down on the year, pretty much as expected. Quarterly stocks were also bearish, up 2% from a year ago. Additionally, the trade expects another bearish round of world supply and demand numbers October 10. ABARE sees Australian wheat production at 24.23 million tons.

The cash cattle market remained untested with no bids evident. A few showlists are priced around 162.00 in the South and 252.00 to 255.00 plus in the North, Significant business will probably be delayed until at least Wednesday or Thursday. The kill totaled 115,000 head, 1,000 more than last week, and 7,000 less than last year.

Boxed beef cutout values were steady to weak on moderate to fairly good demand and moderate to heavy offerings. . Choice beef was up .01 at 238.03, and select was .38 lower at 226.45.

Live cattle contracts on the Chicago Mercantile Exchange settled 37 to 100 points lower. The trade was more concentrated on position adjustment rather than basing price shifts on fundamental market activity. Following gains on Monday when prices moved to new highs, traders appeared to be willing to square positions at the end of the month, and third quarter of the year. October settled .50 lower at 160.45, and December was down 1.00 at 163.47.

Feeder cattle settled unchanged to 77 points higher. Feeder contracts backed away from early gains as traders focused on the pressure in the live cattle futures. End of the month and quarter position squaring were the main features. October settled .77 higher at 235.42, and November was up .55 at 235.05.

Feeder cattle revised receipts at the Oklahoma National Stockyards totaled 6517 head on Monday. Compared to last week, feeder steers and heifers traded mostly 2.00 to 6.00 higher with the most advance being seen on 6 to 7 weight cattle. Steer and heifer calves trended mostly steady to 6.00 higher. The largest demand has been seen on larger packages of weaned cattle that are ready to be turned out. Feeder steers, medium and large 1, calves weighing 624 pounds averaged 240.22 per hundredweight. 668 pound heifers brought 234.14.

There was an active hog market, with moderate demand. Barrows and gilts in the Iowa/Minnesota direct trade closed .47 higher at 108.99 weighted average on a carcass basis, the West was up .36 at 108.54, and the East was .01 lower at 101.51. Missouri direct trade was not reported. Illinois direct trade hogs were steady with moderate demand for moderate offerings from 70.00 to 75.000. Midwest hogs on a live basis closed steady to an instance of 2.00 higher from 70.00 to 74.00.

Lean hogs settled 20 to 117 points higher with only December lower. The strong early gains faded slightly as traders were concerned on the lack of additional aggressive moves in the cash hog markets and general pressure in the live cattle complex. October settled .65 higher at 107.97, and December was down .32 at 94.52.

The pork carcass cutout value FOB plant closed 1.29 higher at 121.98. Bellies were over $8.00 higher.

The Tuesday hog slaughter at 424,000 head was 3,000 greater than last week, but down 11,000 from last year.

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