Grains, cattle end the week lower

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Corn futures closed lower on Friday. Corn futures tumbled on profit taking and disappointing export data. Weak demand for U.S. corn weighed on the market despite price friendly WASDE estimates. Export sales were reported at 14,200 tonnes, significantly lower than trade expectations of 300,000 to 400,000 tonnes. Although prices have dipped from session highs, the market will continue to see support as ending stocks become tighter and productions numbers decline. USDA lowered domestic ending stocks to 619 million bushels while global ending stocks were lowered to 117.270 million tonnes. December corn closed 20 ½ cents lower.

Soybean futures closed lower on Friday. The reversal in the soybean market today was a combination of several factors. First, yesterday’s gains were clearly a result of bullish momentum in the corn and wheat markets. When these markets turned lower overnight, soybeans followed suit. Secondly, poor export sales added to downward pressure. Weekly export sales for the ended October 4th totaled 500,700 tonnes, 249,000 tonnes below the lower range of trade expectations. And lastly, the market was affected by sharp sell offs as traders reacted to Thursday’s particularly bearish estimates for soybean production and yields. November soybeans closed 25 ½ cents lower.

Wheat futures closed lower on Friday. Lackluster demand for U.S. wheat weighed heavily on futures prices today. Wheat futures dropped more than 3% from the previous trading session on poor export data and overall weakness in the grain complex. Weekly export sales data reported wheat exports at 279,900 tonnes, well below trade expectations. The market also followed the corn and soybeans markets lower. December wheat at CBOT closed 29 ¼ cents lower, KCBT closed 27 ¾ cents lower, and MGE closed 22 ½ cents lower.

Live cattle futures closed lower on Friday. Tumbling grain prices and poor export data offset beef market strength and cash price optimism. The turnaround in the grain complex sparked liquidation in the livestock markets after offering firm support to 2013 contracts on cost of production worries. Weekly export data showed total beef exports for the week ended October 4th at 15,100 tonnes, down 5 percent from the previous week, indicative of lackluster demand for U.S. beef products abroad. Midday beef prices were higher but offered little help in supporting futures. Cash trade movement remains stagnate this afternoon. Preliminary asking prices are $126 plus in the South and $195 plus in the North. October cattle closed 70 cents lower while December cattle closed 43 lower.

Lean hog futures closed higher on Friday.The front month October contract retired today at noon, and December has now moved to the forefront. Nearby contracts remained strengthened throughout the session on strength in the pork carcass value. December and early 2013 contracts found additional support as traders liquidated their positions out of the October contract. Third and fourth quarter contracts posted firm losses on significant declines in the grain complex. Overall, cash prices were reported higher today. The December contract closed 88 cents higher. Deferred contracts closed mixed.

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