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Traders and analysts seemed to have either taken last week off for Thanksgiving or spent more time with the holiday wine bottle than advisable. At least that’s how it looks when you look at market trends for the past week. Let’s see, Corn futures prices were near steady, but soybeans were sharply lower while wheat prices were near unchanged except for the March contract in Chicago, which was up 13 cents. The cattle futures markets, both for live and feeder cattle, were all lower, but cash prices for both classes were sharply higher. Of course hog prices were their usual unpredictable selves thanks to virtually no true cash trade.
At least the outside markets seemed to have quieted somewhat this past week, although whether that will hold remains the question of the day. But for now, the European debt crisis has taken on a more restrained tone and holiday shopping over the Thanksgiving weekend seemed to be better than expected.
In Chicago, the January Soybean futures contract lost 28 cents for the week ended Tuesday, while the March contract was down nearly as much and May lost more than 27 cents. Good growing conditions in South America continue, and as a result, lower domestic prices seem likely if those numbers hold.
Corn prices were virtually the same as last Tuesday, though there was substantial fluctuation during the days between Tuesdays. The December futures contract was down a penny for the week, with the March off less than a penny and May up less than a cent. Continued economic uncertainty, the good South American growing conditions and the short, low-volume holiday week combined to keep prices from exhibiting big moves.
Wheat prices were mixed, with spreads reversing their recent tightening, especially in Chicago. The December futures contract in Chicago was up less than a penny for the week ended Tuesday, but the March contract gained 13 cents for the week. In Kansas City, the December contract lost a nickel while March was unchanged and May gained almost a cent.
Live Cattle futures dropped, with the December contract off 87 cents and February down 85. The April contract dropped $1.55 and June lost $1.67. But cash fed cattle prices were sharply higher last week, with the bulk of fed cattle in the Southern Plains trading at $125-126, up about three bucks compared to the previous week. However, packer margins continue to suffer, as boxed beef cutout values were lower. The Choice lost $1.92 and Select dropped $1.41 for the week. Early indications are for steady to soft cash fed prices this week, but the tight numbers of market-ready cattle on showlists make those predictions very “soft.”
Feeder Cattle futures were also lower, as the January contract dropped $2.20 compared to last Tuesday, while the March was down $1.57 and April dropped $1.50. However, early-week cash feeder auctions were sharply higher for most classes of calves and feeders as grazers and feedlots tried to take ownership of increasingly tight supplies. Improved wheat pasture conditions in some areas of Oklahoma and Texas also supported calf prices.
Hog prices were mixed as cash butchers traded in Red Oak at mostly $58 on Tuesday, with no market last week to compare to. Lean Hog futures were mixed, and given the tiny number of truly independent commercial hog producers left in this country, are mostly a playground for speculators. With most pork produced by vertically integrated companies or their contract producers, the need and viability for hog futures seems likely to be completely lost in the next few years.
The next major reports from USDA are the Crop Production and Supply and Demand reports on Dec. 9. The December reports are usually non-events, as traders wait for the January report and final production numbers to put much stock in a USDA report. Meanwhile, of course, the “outside markets”, as well as export prospects, South American weather and, for cattle producers, North American weather are likely to be the main fundamental factors affecting the market.
Traders and analysts seemed to have either taken last week off for Thanksgiving or spent more time with the holiday wine bottle than advisable. At least that’s how it looks when you look at market trends for the past week. Let’s see, Corn futures prices were near steady, but soybeans were sharply lower while wheat prices were near unchanged except for the March contract in Chicago, which was up 13 cents. The cattle futures markets, both for live and feeder cattle, were all lower, but cash prices for both classes were sharply higher. Of course hog prices were their usual unpredictable selves thanks to virtually no true cash trade.
At least the outside markets seemed to have quieted somewhat this past week, although whether that will hold remains the question of the day. But for now, the European debt crisis has taken on a more restrained tone and holiday shopping over the Thanksgiving weekend seemed to be better than expected.
In Chicago, the January Soybean futures contract lost 28 cents for the week ended Tuesday, while the March contract was down nearly as much and May lost more than 27 cents. Good growing conditions in South America continue, and as a result, lower domestic prices seem likely if those numbers hold.
Corn prices were virtually the same as last Tuesday, though there was substantial fluctuation during the days between Tuesdays. The December futures contract was down a penny for the week, with the March off less than a penny and May up less than a cent. Continued economic uncertainty, the good South American growing conditions and the short, low-volume holiday week combined to keep prices from exhibiting big moves.
Wheat prices were mixed, with spreads reversing their recent tightening, especially in Chicago. The December futures contract in Chicago was up less than a penny for the week ended Tuesday, but the March contract gained 13 cents for the week. In Kansas City, the December contract lost a nickel while March was unchanged and May gained almost a cent.
Live Cattle futures dropped, with the December contract off 87 cents and February down 85. The April contract dropped $1.55 and June lost $1.67. But cash fed cattle prices were sharply higher last week, with the bulk of fed cattle in the Southern Plains trading at $125-126, up about three bucks compared to the previous week. However, packer margins continue to suffer, as boxed beef cutout values were lower. The Choice lost $1.92 and Select dropped $1.41 for the week. Early indications are for steady to soft cash fed prices this week, but the tight numbers of market-ready cattle on showlists make those predictions very “soft.”
Feeder Cattle futures were also lower, as the January contract dropped $2.20 compared to last Tuesday, while the March was down $1.57 and April dropped $1.50. However, early-week cash feeder auctions were sharply higher for most classes of calves and feeders as grazers and feedlots tried to take ownership of increasingly tight supplies. Improved wheat pasture conditions in some areas of Oklahoma and Texas also supported calf prices.
Hog prices were mixed as cash butchers traded in Red Oak at mostly $58 on Tuesday, with no market last week to compare to. Lean Hog futures were mixed, and given the tiny number of truly independent commercial hog producers left in this country, are mostly a playground for speculators. With most pork produced by vertically integrated companies or their contract producers, the need and viability for hog futures seems likely to be completely lost in the next few years.
The next major reports from USDA are the Crop Production and Supply and Demand reports on Dec. 9. The December reports are usually non-events, as traders wait for the January report and final production numbers to put much stock in a USDA report. Meanwhile, of course, the “outside markets”, as well as export prospects, South American weather and, for cattle producers, North American weather are likely to be the main fundamental factors affecting the market.
