Monday's Closing Grain and Livestock Futures
Dec. corn closed at $7.44 and 3/4, down 3 and 1/2 cents
Nov. soybeans closed at $16.10, down 11 and 3/4 cents
Oct. soybean meal closed at $481.60, down $2.90
Oct. soybean oil closed at 53.76, down 69 points
Dec. wheat closed at $8.92, down 5 and 1/4 cents
Oct. live cattle closed at $125.30, down 22 cents
Oct. lean hogs closed at $76.50, up 70 cents
Nov. crude oil closed at $91.93, down 96 cents
Dec. cotton closed at 72.50, down 75 points
Oct. Class III milk closed at $20.14, down 7 cents
Oct. gold closed at $1,762.20, down $13.40
Dow Jones Industrial Average: 13,558.92, down 20.55 points
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Market ReCap
Soybeans were lower on technical and fund selling, along with spillover from the outside markets. The dollar was higher, with the Dow, gold, and crude oil lower. There are concerns about demand from China and Japan, and parts of Brazil got good rainfall over the weekend. USDA reports 73% of soybeans are dropping leaves, compared to 51% a year ago and 59% for the five year average with 22% harvested as of Sunday, compared to 4% last year and 8% on average. 35% of soybeans are in good to excellent condition, up 2% on the week. Soybean meal was mixed, consolidating, and bean oil was down on spillover from beans.
Corn was lower on fund and technical selling, in addition to spillover from beans and the outside markets. At this point, tighter supplies and lower production are pretty much priced in, and the trade’s worried about the slowdown in demand. USDA states 88% of corn has reached maturity, compared to 58% a year ago and 57% on average and 39% is harvested, compared to 12% last year and 13% on average. 24% of this year’s crop is called good to excellent, unchanged from last week. Ethanol futures were lower. According to Ukraine’s Ag Ministry, corn exports for the marketing year to date are 1.29 million tons, compared to 58,300 tons from July 1 to September 21, 2011. Dow Jones Newswires reports South Korea’s Nonghyup Feed Inc. bought 65,000 tons of optional origin corn, adding the corn price for delivery to East Asia is at a $20 discount to wheat. The Philippines Department of Agriculture projects 2013 corn production at 8.4 million tons, potentially decreasing feed wheat imports and possibly leading to exports.
The wheat complex was lower on fund and technical selling, along with spillover from the dollar, corn, and soybeans. There was no real fresh news and the trade’s getting ready for USDA’s 2012 production estimate Friday. According to the Ag Department, 25% of the 2012/13 winter wheat crop is planted, compared to 22% a year ago and 27% on average. European wheat was lower on the lower U.S. grains. Iraq’s tendering for at least 50,000 tons of wheat from any origin. The U.S. has agreed to donate 50,000 tons of wheat to Jordan via a government food aid program and DTN reports Turkey bought “at least” 25,000 tons of milling wheat from Ukraine. Kiev adds wheat exports from July 1 to September 21, 2012 were 2.24 million tons, up 77.9% from the same period in 2011, with 1.67 million tons of that milling wheat and 580,000 tons feed wheat. Kazakhstan’s Ag Ministry states 94.1% of this year’s grain crop is harvested with the running total at 13.019 million tons, down sharply on the year due to drought.
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