CLOSING AG’S 10/14/13
Cattle: Strong gains in futures on the back of a much stronger than expected live market, 2) shortcovering/technical buying, 3) lighter showlists both north and south, and perhaps 4) still major media reports over the cattle kill in the Dakota’s last week.
Hogs: Modest losses in a slow trade. As before there has been a definitive move by funds out of long hogs and into long cattle as per volume and open interest. Some talk pork has petered out or numbers set to increase and weights set to rise on cooler temps and ‘new corn’ gluttony.
GRAINS & OILSEEDS:
Corn: Not much here except a consolidation of Friday’s losses; of uncertainty over just what the EPA is up to on ethanol’s mandate; still some corn/wheat spreading apparent; still talk China buying under the market; and higher feed use as weather cools off domestically.
Soybeans: Strong but only modestly so after November takes out old swing lows on still-high harvest result yields; however, like the corn some uncertainty over bio-dielsal aspect of the EPA’s ‘leaked’ memo on ethanol; some support off China reportedly taking advantage of the USDA’s ‘silence’ to accumulate more U.S. soybeans.
Wheat: Under pressure most of the session but at the close recovered to modest gains amid light volume. The corn and bean rally helped as did light but fading concern over Black Sea harvests and India’s cyclone.