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Grain values responded negatively this week to the news from the financial and other outside markets. The sharp declines in the stock market, as well as lower prices for most commodities, put pressure on grain prices, although that short-term trend showed signs of reversing on Tuesday. Wheat was the biggest loser this week, at least in terms of market losses compared to crop value. The September futures contract in Chicago lost 34 cents for the week ended Tuesday, with the December contract off nearly 31 cents. A strong dollar that tends to limit exports, as well as a renewal of worries about European government debt, kept pressure on prices. In Kansas City, the September contract was off almost 22 cents, with December and March up nearly 27 cents. The same economic concerns plagued the Hard Red Winter market, but the extreme drought conditions in Texas, Oklahoma and parts of Kansas kept those prices from falling as much as Soft Red Winter Wheat.
Soybean prices also dropped sharply, as the September futures contract lost more than 35 cents, while the November was down more than 32 and January lost more than 34 cents compared to last Tuesday. Global economic weakness was mostly to blame for the losses, as a stronger dollar and possible reductions in demand weighed on prices.
Corn Futures were also lower this week, with September off almost 17 cents, while December lost nearly 20. Besides the factors causing weakness in the other grains, there was continued discussion about large increases in planted corn acreage in South America, potentially increasing global supplies by a significant amount. However, many analysts were releasing their most recent estimates of this fall’s total corn crop, and they are consistently below last month’s USDA estimates.
Livestock prices were mixed this week. Live Cattle futures were higher, with the October contract up $2.45 compared to last Tuesday, while the December gained $1.55 and February was up $1.22. Fed cattle prices bucked the trend of the financial markets and most commodities as exports of beef continue strong enough to further reduce domestic per capita supplies. Cash fat cattle were steady to firm in late-week trade before Labor Day, with most cattle trading hands at $113 to $114 late on Friday. This week’s early indicators are for stronger values once again. The higher prices for fed cattle were in spite of sharply lower boxed-beef cutout prices, as the Choice fell $3.89 compared to last Tuesday, while the Select lost an even five bucks in the same time frame.
Feeder Cattle prices were mixed this week, as futures were generally higher, while cash auctions were all over the board, with some reporting strong prices for both feeders and calves, while at other auction houses, prices were lower, especially for calves. The lower grain prices did help support feeder values somewhat, but the stronger dollar had others worried about long-term demand for fat cattle. September Feeder futures were up $1.17 for the week, with the October up $1.47 and November up $1.45.
Hog prices were sharply lower this week on larger supplies, lackluster demand and heavier carcass. October Lean Hog futures lost $2.35 for the week ended Tuesday, while the December was down $1.90. Cash butchers in Red Oak were down six to seven dollars this week, trading Tuesday at $58-59.
Next Monday, USDA releases the monthly Crop Production and Supply and Demand reports, amid much fanfare and hoopla by grain traders. Expect sharp reductions in projected yields, especially of corn. In addition, the economy, the relative strength of the dollar and of course weather, will affect the markets in the coming week.
Grain values responded negatively this week to the news from the financial and other outside markets. The sharp declines in the stock market, as well as lower prices for most commodities, put pressure on grain prices, although that short-term trend showed signs of reversing on Tuesday. Wheat was the biggest loser this week, at least in terms of market losses compared to crop value. The September futures contract in Chicago lost 34 cents for the week ended Tuesday, with the December contract off nearly 31 cents. A strong dollar that tends to limit exports, as well as a renewal of worries about European government debt, kept pressure on prices. In Kansas City, the September contract was off almost 22 cents, with December and March up nearly 27 cents. The same economic concerns plagued the Hard Red Winter market, but the extreme drought conditions in Texas, Oklahoma and parts of Kansas kept those prices from falling as much as Soft Red Winter Wheat.
Soybean prices also dropped sharply, as the September futures contract lost more than 35 cents, while the November was down more than 32 and January lost more than 34 cents compared to last Tuesday. Global economic weakness was mostly to blame for the losses, as a stronger dollar and possible reductions in demand weighed on prices.
Corn Futures were also lower this week, with September off almost 17 cents, while December lost nearly 20. Besides the factors causing weakness in the other grains, there was continued discussion about large increases in planted corn acreage in South America, potentially increasing global supplies by a significant amount. However, many analysts were releasing their most recent estimates of this fall’s total corn crop, and they are consistently below last month’s USDA estimates.
Livestock prices were mixed this week. Live Cattle futures were higher, with the October contract up $2.45 compared to last Tuesday, while the December gained $1.55 and February was up $1.22. Fed cattle prices bucked the trend of the financial markets and most commodities as exports of beef continue strong enough to further reduce domestic per capita supplies. Cash fat cattle were steady to firm in late-week trade before Labor Day, with most cattle trading hands at $113 to $114 late on Friday. This week’s early indicators are for stronger values once again. The higher prices for fed cattle were in spite of sharply lower boxed-beef cutout prices, as the Choice fell $3.89 compared to last Tuesday, while the Select lost an even five bucks in the same time frame.
Feeder Cattle prices were mixed this week, as futures were generally higher, while cash auctions were all over the board, with some reporting strong prices for both feeders and calves, while at other auction houses, prices were lower, especially for calves. The lower grain prices did help support feeder values somewhat, but the stronger dollar had others worried about long-term demand for fat cattle. September Feeder futures were up $1.17 for the week, with the October up $1.47 and November up $1.45.
Hog prices were sharply lower this week on larger supplies, lackluster demand and heavier carcass. October Lean Hog futures lost $2.35 for the week ended Tuesday, while the December was down $1.90. Cash butchers in Red Oak were down six to seven dollars this week, trading Tuesday at $58-59.
Next Monday, USDA releases the monthly Crop Production and Supply and Demand reports, amid much fanfare and hoopla by grain traders. Expect sharp reductions in projected yields, especially of corn. In addition, the economy, the relative strength of the dollar and of course weather, will affect the markets in the coming week.
