Corn: December corn futures fell 2 1/2 cents to $5.30 1/4 a bushel, after rising earlier to $5.37, the highest intraday price since $5.38 3/4 on Oct. 8. Futures fell for the first day in four as shorter-term traders took some profits amid beliefs the market has established a harvest low. Grain futures were supported by a drop in the U.S. dollar index to three-week lows and continued strength in crude oil futures, which notched a seven-year high. Rising prices for silver and other metals further fueled a bullish commodity backdrop. Also today, AgResource Co. analyst Dan Basse told a conference in Switzerland that farmers need more space to grow more crops to meet mounting demand for food and renewable fuel at a time of slowing growth in crop yields, Reuters reported. Rising consumption of staple crops is being driven mostly by Chinese demand. Late yesterday, USDA reported 52% of the U.S. corn harvest was completed as of Oct. 17, up from 41% a week ago but slightly below trade expectations.
Soybeans: November soybeans rose 6 1/2 cents to $12.28 per bushel, the contract’s highest closing price since $12.28 1/4 on Oct. 11. December soymeal surged $4.70 to $322.60 per ton, the highest close in almost two weeks. December soyoil gained 37 points to 62.39 cents per pound, the highest close since Aug. 16. Soybeans gained for the fourth consecutive session and soyoil closed at a two-month high amid growing export optimism centering around China, along with followthrough strength from a corrective bounce from 6 1/2-month lows last week. Yesterday’s surprisingly strong weekly USDA soybean export inspections, at nearly 2.3 MMT, fueled ideas the recent price slump is sparking fresh overseas buying and the market may have established a harvest low. Late yesterday, USDA reported the U.S. soybean harvest was 60% complete as of Oct. 17, up from 49% a week earlier. Progress was below trade expectations for harvest to be about 63% complete.
Wheat: December SRW futures slipped 1/4 cent to $7.36 per bushel, while December HRW futures slid 3/4 cent to $7.48 1/4, after rising to a two-week high earlier. December spring wheat rose 6 1/2 cents to $9.74 1/4, the highest closing price for a nearby contract since July 2012. Tight global wheat supplies and spillover from strength in soybean, energy and financial markets supported wheat futures, as did U.S. dollar weakness. Winter wheat planting is nearing completion amid persistent dryness across the Central and Southern Plains, fostering concern over slow emergence and suboptimal plant establishment. Yesterday’s USDA winter wheat planting progress update fell short of trade expectations at 70% complete as of Oct. 17, below the average analyst estimate of about 73%.
Cotton: December cotton futures rallied 79 points to $1.0783 cents per pound, up from $1.0580 at the end of September. Relatively tight supplies and strong exports continue to underpin cotton futures, even with the U.S. expected to harvest a large crop. Dollar weakness and strength in other commodities, such as crude oil and silver, contribute to today’s bullish tone, while the S&P 500 index extended a recent rebound and is nearing all-time highs reached in early September. Strong Chinese buying is being at least partially driven by the U.S. ban on cotton and cotton products originated in China’s Western Xinjiang region over oppression of the Uyghur ethnic minority. As a result, China’s cotton industry is being forced to boost imports of U.S. cotton to be used in making fabric and apparel from that region.
Cattle: December live cattle fell 40 cents to $130.025 per hundredweight, after earlier rising to $131.125, the highest intraday price since $131.825 on Sept. 7. November feeder cattle fell 50 cents to $158.85. Futures fell under mild profit-taking following recent gains. Feeder futures saw some more chart-based selling following yesterday’s losses. Wholesale beef prices appear to be stabilizing after a prolonged slump, which may help generate fresh momentum in futures. Choice cutout values today rose 79 cents to $280.88 up from a 2 1/2-month low of $280.02 Oct. 13. Movement totaled 147 loads. Cash cattle trade so far this week has been quiet. Early bids were seen at $1 to $2 higher than last week’s average cash trade of $123.84 in the top five feedlot regions. Live steers in five top feedlot regions averaged $125.00 today, USDA said. The market awaits USDA Oct. 22 Cattle on Feed Report. In last month’s report, USDA reported an unexpected 2.3% year-over-year increase in feedlot placements in August.
Hogs: December lean hogs fell $1.35 to $77.40 per hundredweight, near the bottom of the day’s range and also near last week’s lows. Hog futures slipped back near last week’s lows amid pressure from weak cash fundamentals. Pork carcass cutouts fell another $1.44 today to $99.34, the lowest daily average since $98.30 on March 12. The latest CME lean hog index fell 71 cents to $86.88, the lowest since $86.76 March 9, but still over $9.00 above December futures. National direct carcasses also remained under pressure, averaging $66.97 today, down 27 cents. While packer margins are strong and market-ready hog numbers are under year-ago, meat processors aren’t having to pay up to get needed supplies.