Poor export demand weighs on corn futures
Corn futures closed lower on poor export demand. Corn futures tumbled, falling 1.72% on another week of disappointing export sales. This week’s export sales totaled 142,300 tonnes, below the lower range of trade expectations. Overall weakness in the grain complex along with strength in the dollar pressured prices to a lower close. December corn futures closed 13 ¼ cents lower.
Soybean futures closed lower but well above session lows. The market closed lower on profit taking after yesterday’s strong gains and news that commodity index funds are rebalancing the percentage allotted to soybeans and soybean oil. USDA reported export sales of 120,000 metric tonnes of soybeans to an undisclosed location during the current marketing year which helped to limit losses. November soybean futures closed 6 ½ cents lower.
Wheat futures closed lower as traders focus more on sluggish demand fundamentals. Wheat futures jumped over 2 percent on Wednesday after Ukraine confirmed the implementation of a wheat export ban starting next month. In spite of this, prices turned lower during the overnight session on profit taking. However, the market managed to trim losses thanks to higher than expected weekly export sales. December wheat futures are CBOT closed 11 cents lower. December wheat futures at KCBT closed 7 cents lower while closing 9 ¾ cents lower at MGE.
Live cattle futures closed with sharp losses despite supportive fundamentals. Cattle futures opened pit trade higher, supported by good wholesale beef demand and good export demand for beef products. Weekly export sales totaled 16,600 tonnes, 15 percent higher than the previous week. However, long liquidation forced cattle futures sharply lower. December cattle futures closed $1.43 cents lower.
Lean hog futures closed lower on Thursday. Weakening fundamentals and market uncertainty remain burdensome for futures prices. The pork carcass value continues to unravel, with ham cutouts dropping over six dollars on Wednesday. Packer margins are now in the red, forcing processors to lower bids causing cash price momentum to ease up. December futures closed 13 cents lower.