Pro Farmer's After the Bell: Cattle Surge

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Corn: Corn futures ended the day near its daily lows with losses of 2 1/4 to 2 1/2 cents. Funds sold an estimated 6,500 corn contracts (32.5 million bu.) today. Early pressure came on followthrough from yesterday's losses and spillover from soybeans, but corn extended losses even though soybeans came off their lows. A weaker tone in the U.S. dollar index somewhat helped limit losses, but traders' focus was on favorable weather for the pollinating safrinha crop in Brazil.

Soybeans: Soybean futures faced pressure for most of the day, but the market was able to pare losses at the close to end narrowly mixed. Of note, the front-month settled 1/4 cent below the $10.00 level. Soybean futures faced pressure for much of the session as traders remain aware that a whopper of a crop is being harvested in Brazil, which will eventually slow demand for the U.S. oilseed.

Wheat: Winter wheat futures closed 4 1/4 to 5 3/4 cents lower, while spring wheat futures finished mixed. The winter wheats closed near their lows of the day and HRW futures led the decline. Wheat futures were under pressure through the day due to continuing forecasts for much-needed precipitation later this week for the parched HRW area. Weakness in the corn market added to today's negative trade. Traders shrugged off the positive news Saudi Arabia overnight purchased 120,000 MT of U.S. HRW wheat for 2016-17.

Cotton: Cotton futures closed 12 to 50 points higher through the December contract. The May contract led gains. Cotton futures bounced higher today on largely technical trading. Futures moved higher after failing to punch through support at yesterday's low, prompting short-covering. A slightly weaker U.S. dollar was supportive but crude oil futures were slightly weaker as well.

Cattle: Live cattle futures ended high-range with gains of $1.82 1/2 to $2.72 1/2 through the October contract, with nearbys leading gains. Futures opened slightly higher but quickly surged as traders turned their focus to narrowing the discount nearby futures hold to the cash market. Traders are also reacting to news that more countries are banning beef from Brazil due to its scandal surrounding its meat inspectors.

Hogs: While the April lean hog contract enjoyed slight gains, the May through August contracts settled 22 1/2 to 57 1/2 cents lower and far-deferred months posted slight gains. Momentum clearly favors market bears, which kept most contracts under pressure for most of the day. Adding to the negative tone was a drop in the pork cutout value, though this encouraged better movement of 186.15 loads this morning.

 

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