After the Bell: Soybeans Hold up Well in Face of USDA Data

Posted on 09/12/2018 2:59 PM

Corn: Futures contracts fell sharply and are within a few cents of the July contract low. Corn contracts were down 8 to 14 ¼ cents with December leading the declines and closing at $3.52 ½. USDA surprised the trade by raising the national corn yield when most were looking for a small drop from the August forecast.

Soybeans: Soybean futures prices finished up around 8 cents and high-range on the day after setting contract lows in morning dealings. Meal prices were up $1.50 to $2.20 and bean oil was down around 10 points. USDA’s new soybean crop estimate came in 44 million bu. higher than the average pre-report trade estimate and up 107 million bu. from last month’s report.

Wheat: Wheat tumbled to the lowest since July 13, erasing earlier gains. SRW futures fell about 12 cents, HRW contracts were down 14 to 16 cents and spring wheat fell 10 to 13 cents. USDA surprised the trade with a bigger world wheat crop, which led to an unexpected smaller reduction in global inventories projected for the 2018-19 season.

Cotton: Cotton futures settled 25 to 36 points lower today, which was midrange. The cotton market did not show a significant price reaction to today’s monthly USDA supply and demand report. USDA’s U.S. cotton crop estimate was 562,000 bales higher than anticipated and 447,000 bales higher than last month.

Hogs: Buyers returned to the lean hog market today, helping futures to retrace Tuesday’s losses and settle $1.075 to $1.525 higher for the day.  The trend of the market continues to favor market bulls. Lean hog futures moved higher today amid ongoing signs African swine fever could be a major problem for China and supportive data from USDA’s monthly balance sheet update.

Cattle: Live and feeder cattle futures contracts closed sharply higher after a mixed start. Live cattle rose $1.10 to $2.175 with feeders up $2.225 to $2.575. Futures bulls stampeded into the close on signs of improving demand for U.S. beef.  The drop in beef prices during the past week has encouraged ramped-up grocer buying.

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