Grain and livestock prices end mixed | Wednesday, August 24, 2022
GRAIN AND LIVESTOCK PRICES END MIXED: 3:10 P.M.
U.S. grain prices ended the trade on Wednesday mixed. September corn was up 6¢ with December corn up 2¢. September soybean futures were 6¢ lower, and November beans down 4¢.
September Chicago wheat closed up 12¢. September Kansas City wheat closed up 14¢. and September Minneapolis wheat closed up 8¢.
Livestock prices closed the day mixed. Live cattle futures finished the day down 30¢ on the August contract. August feeder cattle closed up 32¢ and October lean hog futures closed the day down $2.52.
Crude oil is up $1.62 and the Dow futures were 59 points higher.
The strong start to the trade today was quickly sold. USDA announced this morning that the U.S. sold another 517,000 metric tons of soybeans to China. This just adds more demand for U.S. soybeans and our export book of business is well ahead of where we were last year.
November soybeans closed out the day lower after being up 20+ cents. Closing at $14.57, November soybeans closed below the 100-day moving average. It would not be too surprising if we trend lower through the end of the week.
Not much new for the livestock markets. Lean hogs continue to find a lot of pressure and the October contract is working on filling a gap left from early July. We would need to get down to $89.75 to fill the gap. Once the gap is filled we could find some support on October lean hogs.
GRAIN PRICES DIP AT MIDDAY: 10:35 AM
At mid-day, grain prices have moved lower. September corn is trading 1-2¢ lower with December corn trading 2-3¢ lower.September soybean futures are trading 2-3¢ lower with November soybeans trading 1-2¢ lower.
Chicago wheat is 1-2¢ lower, Kansas City wheat is trading 2-3¢ higher, and Minneapolis wheat is trading 6-7¢ lower.
Livestock prices are mixed this morning. Live cattle are 40¢ lower, feeder cattle are 40¢ higher, and lean hog futures are $2.05 lower.
Crude oil is down 47¢ this morning and the stock market is up 124 points.
USDA Announced that China has bought 517,000 metric tons of new crop soybeans and that popped the markets at 8:30. Since then, the grain prices have run out of gas and currently trading lower. After posting a new high here today and if we would close lower on the day, this will be bad news for the Bulls in the market.
November soybeans are currently trading about $14.60, which is an interesting area. The 100-day moving average is at $14.58 and if we would close below the $14.58, that will look bad on the charts and could bring in some more selling on November soybeans.
Lean hogs are continuing to feel the pressure of lower products. Pork bellies collapsed yesterday and that is putting pressure on the lean hog futures this morning. Feeder cattle have reversed and are trading higher mainly with corn trading lower.
Weather for the next two weeks looks to be near ideal with mild temps and decent chances of rain across much of the U.S.
GRAIN PRICES HIGH AT OPEN: 8:35 AM
U.S. grain prices are higher this morning. September corn futures are 13-14¢ higher, November soybean futures are 22-23¢ higher, September Chicago wheat is 12¢ higher, September Kansas City wheat futures are 19¢ higher, and September Minneapolis wheat futures are 12¢ higher.Livestock prices are lower this morning. Live cattle are 40¢ lower, feeder cattle are 45¢ lower, and lean hog futures are $1.22 lower.
Crude oil is up 15¢ this morning and the stock market is down 40 points to start off today's trade.
Carryover from the stronger markets yesterday have U.S. grain prices surging higher this morning. A combination of poor results on the Pro Farmer Crop Tour, dryness in China, and an unexpected rise in prevent plant acres in the U.S. has the market thinking we could see a much reduced U.S. corn crop.
The soybean crop is still questionable as some of the last August rains seem to have helped the crop.
December corn futures are breaking out to the upside and should find some resistance at $6.77, which is the 100 day moving average. On November soybeans, we could test the July 29 high of $14.89 today.
In the livestock market this morning, we see lean hogs under pressure. Pork belly prices collapsed yesterday and that cause the futures to reverse as well. Negative packer margins are all pressuring the hog prices as well.
Live cattle priced are pretty quiet this morning. Strong demand and lower cattle numbers should keep live cattle supported. Feeder cattle are a bit lower mainly due to the higher corn prices.
About the Author: Cory Bratland is the youngest of five children who grew up on his family’s farm near Willow Lake, South Dakota. Bratland attended Willow Lake High School and graduated with an A.A.S. degree in ag business management at Lake Area Technical Institute in Watertown, South Dakota. He began his career as a cash grain marketer and grain trader with Cargill, Inc. While working for Cargill, Inc. Bratland held various merchandising jobs across South Dakota and Minnesota. In 2003, he was licensed as a Series 3 and 30 commodity broker. In 2008, Bratland left Cargill to be an independent commodity broker, starting Prairie Ag Marketing Services. In 2009, he partnered with Al Kluis as an affiliate office. In 2010, he became Kluis Commodity Advisors' Chief Grain Strategist. In addition to working with Al daily on marketing strategies, Bratland also serves private clients through Kluis Publishing and Prairie Ag Marketing. He lives near Willow Lake, South Dakota with his wife Erica and children, Hunter, Elliot and Isabella. He still actively participates in the family farm that raises corn, soybeans, alfalfa, and also runs a cow/calf operation.
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