Friday Market Watch - Red Ink Dominates Markets

 LIVESTOCK:

Friday's market didn't amount to much as the livestock contracts drifted lower throughout the day and the cash cattle market didn't see any more hungry bidders rush to its market. Heading into next week's trade, all eyes will be on the feeder cattle market to see if it can sustain in its new range. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $1.46 with a weighted average of $117.99 on 5,525 head.

From Friday to Friday livestock futures scored the following changes: August live cattle up $0.98, October live cattle up $0.60; August feeder cattle up $4.63, September feeder cattle up $4.95; July lean hogs up $2.05, August lean hogs up $0.65; September corn down $0.29, December corn down $0.20.

Friday's slaughter is estimated at 123,000 head, 2,000 head less than a week ago and 4,000 head more than a year ago. Saturday's slaughter is projected to be around 54,000 head. This week's slaughter is estimated at 677,000 head, incomparable to a week ago but 27,000 head more than a week ago.

Boxed beef prices closed mixed: choice up $1.16 ($268.91) and select down $.12 ($241.79) with a movement of 82 loads (39.32 loads of choice, 20.87 loads of select, 8.88 loads of trim and 13.22 loads of ground beef). Throughout the week choice cuts averaged $268.27 (up $1.11 from last week) and select cuts averaged $242.03 (up $0.22 from a week ago) and the week's movement of cuts, grinds, and trim totaled 603 loads.

More: Friday Closing Livestock Market Update - Week Rounds Out in the Red for Futures

GRAINS:

September corn closed down 3/4 cents and December corn was up 2 3/4 cents. August soybeans closed down 5 3/4 cents and November soybeans were up 1 1/4 cents. September KC wheat closed down 11 1/4 cents, September Chicago wheat was down 18 1/4 cents and September Minneapolis wheat was down 3 3/4 cents. 

For the week:

September corn closed down 29 cents and December corn was down 19 3/4 cents. August soybeans ended down 47 1/4 cents and November soybeans were down 54 1/4 cents. September KC wheat closed down $1.08 1/4, September Chicago wheat was down $1.14 3/4 and September Minneapolis wheat was down 85 cents.

DAIRY:

It has been another brutal week for milk futures with more weakness seen in Class III futures than Class IV futures. Underlying spot prices fell more for cheese than for butter. However, much of the pressure on Class IV futures came from the weakness of Grade A nonfat dry milk. Class III price have now fallen back to a level last seen in early January, while Class IV is back to levels last seen in mid-February, depending on the contract. Milk production has been decreasing seasonally and continues to run below a year ago. USDA will release the June Milk Production report next Thursday. This report generally has not been a market mover, but both it and the cold storage report have risen in prominence and can have significant impact on the market even though they are a month behind and the market has already absorbed the milk and dairy products. Traders now have the weekend to ponder the strength or weakness of the market. Most will watch the weather to see the impact it might have on grains and milk production.

More: Friday Closing Dairy Market Update - Milk Futures Close the Week Under Pressure

FORAGE:

Latest Hay Markets Here (forage fodder blog)

OUTSIDE MARKETS:

The September U.S. Dollar Index is trading down 0.45 at 107.96. August gold is down $2.30 at $1,703.50, July silver is up $0.38 at $18.61 and July copper is up $0.0220.August crude oil increased $1.81 per barrel, ending at $97.59. The Dow jumped 658 points, ending at 31,288, while the NASDAQ gained 201 points, closing at 11,452. August heating oil is up $0.0514, August RBOB gasoline is up $0.0197 and August natural gas is up $0.