Poor export data burdens grain, cattle markets

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Corn futures are tumbling midmorning. Profit taking and after an impressive run-up in prices has corn futures trading defensively. Weak demand for U.S. corn is also weighing on the market despite price friendly WASDE estimates. Export sales were reported at 14,200 tonnes, significantly lower than trade expectations. Although prices have dipped from session highs, the market will continue to see support as ending stocks become tighter and productions numbers declined. USDA lowered domestic ending stocks to 619 million bushels while global ending stocks were lowered to 117.270 million tonnes. December corn is trading 19 cents lower.

Soybean futures are experiencing sharp declines at this hour. Soybeans futures are adding to overnight losses and export sales data reveals slowing demand for soybeans. Weekly export sales for the ended Oct 4th, totaled 500,7000 tonnes, 249,000 tonnes below the lower end of trade expectations. The market has not been able to sustain Thursday’s gains due to particularly bearish estimates for soybean production and yield estimates. November soybeans are trading 34 cents lower.

Lackluster demand for U.S. wheat is weighing heavily on futures prices. Wheat futures have dropped over 3% from the previous trading session on poor export data and overall weakness in the grain complex. Weekly export sales data reports wheat exports at 279,900, well below trade expectations. The market is also following corn and soybeans lower at this hour. Yesterday’s October WASDE was neutral for wheat but futures garnered strength from large gains in the corn and soybean markets. December wheat at CBOT is trading 28 cents lower, KCBT is trading 26 cents lower, and MGE is trading 21 cents lower.

Live cattle futures trading mixed midmorning. Cattle futures are weighed down by weak export data. Weekly export data showed total beef exports for the week ended October 4th at 15,100 tonnes, down 5 percent from the previous week. However, higher wholesale beef prices and cash trade optimism should limit losses. Light cash trade was reported in Kansas on Thursday with prices steady to higher with the trade expecting the remainder of cattle to go even a $1 higher. Preliminary asking prices are $126 plus in the South and $195 plus in the North.

Lean hog futures are mixed midmorning. Reminder: Front month October contract is scheduled to retire today at noon. Nearby contracts remain strengthened by the bullish momentum of pork cutout prices. Cash prices are reported steady to lower, but are being offset by cut out strength. Deferred contracts are posting firm losses at this hour due to significant losses in the grain complex. However, grain prices remain at unprecedented levels, therefore limiting downside momentum.

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