Cattle: Cash cattle in total: $131-134.00 and $207-208.00 dressed;
On 85 boxed loads cut outs mixed at up $.48 (sel.) to dn. $39 (chc.)
on moderate midday volume.
Comments: October cattle longs cashing in their chips at the shorts expense with the week’s live trade strongly higher for a second week. Weekly beef export sales were limp but perhaps some reporting was screwed up, if not domestic demand holding up even as live goes to new record highs.
Hogs: Interior hogs lower Western/I-M only early ($85.75 avg.); pork cut outs modestly higher midday up 04.
Comments: December hogs back to recent highs and negating its chart reversal in a fairly active trade. Larger numbers not coming in as expected and weights, while above year ago, did not increase week-on-week as expected on cool temps and new corn. Weekly pork export sales were also rather limp and perhaps the beef’s drive to sharply higher prices is nearing a point to shift more to pork.
GRAINS & OILSEEDS:
Corn: Not much specific news to explain the choppy action but the same old news does: good underlying export demand offsetting delayed harvest that looks to be coming in with above normal yields limiting rallies. One major wild card to me is the EPA and I caution producers not to just ignore that “leaked” EPA memo on a lowering of the ethanol mandate.
Soybeans: Two-sided trade with November seeing some technical selling/profit taking after failing to take out yesterday’s and creating a near ‘double high top’ at $13.18; meal/oil spreads working on the weekly export sales report numbers; soybean export sales about in line but even so more done “visibly’ this week. Light uncertainty over the financial market’s concern over China and potential tightening of bank credit (i.e. as applies to China soybean importers).
Wheat: Lower close as Russia’s PM says plantings picking up; as Ukraine conditions show some improvements; as weekly U.S. export sales report sags (due to the rally?), off 22%; and weakness also off corn’s weakness and decent U.S. winter wheat conditions.