Provided by Stewart-Peterson Inc.
CORN
- Dec corn down 5 @ 6.73
- October crude oil finished $3.38 lower yesterday, causing economic concerns (as well as concerns about demand for biofuel)
- September 21st Fed meeting is expected to result in another interest rate increase
- UK August retail sales data was down 1.6%
- Ukraine, Brazil, and Argentina corn prices are all cheaper than the US
- The railroad strike seems to have been averted as the union and railroad have come to an agreement
SOYBEANS
- Nov soybeans down 10 @ 14.41
- Export sales report showed soybean commitments up 13% from a year ago
- Brazil and Argentina soybean meal and oil prices are cheaper than the US
- China might not import as many soybeans as the USDA is forecasting
- Tension between US and China concerning Taiwan may result in China trying to buy as many soybeans as they can from South America (instead of the US)
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WHEAT
- Dec wheat down 9 @ 8.36, Dec KC down 12 @ 9.14, & Dec MNPLS down 4 @ 9.25
- Chances for rain in the US southern Plains next week
- Russian wheat prices are cheaper than the US
- The NOAA 90 day outlook forecasted warm and dry conditions across most of the Midwest, bu this could cause problems for planting next year’s HRW crop
CATTLE
- Oct LC down 0.425 @ 145.200 & Sep FC down 0.625 @ 178.725
- Cash cattle were steady to $1 higher yesterday
- Packer margins are below a year ago – this may result in slower chain speed
- Weaker corn prices should support feeder cattle futures
- Weakness of boxed beef is a concern
- Choice cuts down 1.13 and select down 0.16
- Cattle slaughter projected at 123K
- CME Feeder Cattle Index for 9/15: down 1.46 @ 178.51
HOGS
- Oct hogs up 0.200 @ 96.250 & Oct pork cutout unchanged @ 104.475
- Hog futures were higher despite weakness in cutouts and cash
- Strong export sales (25,100 mt) yesterday were supportive to the market
- China has recently been a more consistent buyer of pork
- Cutouts were down 1.03 which may limit upside price movement
- National Direct Afternoon report declined 3.15
- Hog slaughter projected at 477K
- CME Lean Hog Index for 9/16: up 0.19 @ 97.77
Author
Brandon Doherty