Friday Market Watch

LIVESTOCK:

The live cattle and lean hog contracts rounded out the day lower upon being pressured from the market's sorry export report. The feeder cattle market struggled with its own pressure of higher corn prices which also led its market to a lower close too. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $2.00 with a weighted average of $118.72 and on 6,682 head. 

From Friday to Friday, livestock futures scored the following changes: August live cattle off $0.65, October live cattle off $1.02; August feeder cattle odd $2.78, September feeder cattle off $2.93; July lean hogs up $3.25, August lean hogs up $6.20; July corn up $0.24, September corn up $0.14.

Friday's slaughter is estimated at 125,000 head, 4,000 head more than a week and year ago. Saturday's slaughter is projected to be around 88,000 head. This week's slaughter is estimated at 593,000 head on the holiday shorted week.

Beef net sales of 11,000 mt for 2022 were down 35% from the previous week and 30% from the prior four-week average. The three largest buyers were Japan (6,300 mt), South Korea (1,700 mt) and Canada (1,100 mt).

Boxed beef prices closed lower: choice down $0.18 ($267.89) and select down $0.73 ($241.85) with a movement of 91 loads (45.07 loads of choice, 23.28 loads of select, 11.03 loads of trim and 11.43 loads of ground beef). Throughout the week choice cuts averaged $267.17 (up $1.46 from last week) and select cuts averaged $241.81 (down $0.27 from last week) and with a total movement of cuts, grinds and trim totaling 446 loads.

More: Friday Closing Livestock Market Update: Sorry Export Data Pushes the Livestock Contracts Lower

GRAINS:

September corn closed up 24 1/4 cents and December corn was up 27 1/4 cents. August soybeans closed up 28 cents and November soybeans were up 31 cents. September KC wheat closed up 56 1/2 cents, September Chicago wheat was up 55 cents and September Minneapolis wheat was up 57 1/4 cents. 

For the week: September corn closed up 13 1/2 cents and December corn was up 16 cents. August soybeans ended up 3 1/2 cents and November soybeans were up 1 1/4 cents. September KC wheat closed up 32 1/4 cents, September Chicago wheat was up 45 1/2 cents and September Minneapolis wheat was up 43 3/4 cents.

DAIRY:

Milk futures rebounded during the second half of the week relieving the oversold condition of the market. However, even though block cheese price increased today, traders remain skeptical. The market shift has been more bearish and it will take a monumental effort in order to regain the losses. The market is likely moving contra seasonal as inflation is having a larger impact on overall demand. There has not been much news about the level of demand we are seeing, but the building of inventory says a lot about it. If production and demand continue at the same pace, inventory will continue to increase. Production is lower than a year ago, but demand is slowing as well. This could keep sufficient supplies available for demand and then some leaving upside price potential limited.

More: Friday Closing Dairy Market Update:  Milk prices May Remain Range Bound 

FORAGE:

This Week's Hay Markets (Forage Fodder Blog)

OUTSIDE MARKETS:

The September U.S. Dollar Index is trading down 0.11 at 106.85. August crude oil gained $2.06 closing at $104.79 per barrel. The DOW declined 46 points closing at 31,388 while the NASDAQ gained 14 points closing at 11,635. August gold is up $2.20 at $1,741.90, July silver is up $0.07 at $19.26 and July copper is down $0.0525. August heating oil is down $0.0186, August RBOB gasoline is up $0.0174 and August natural gas is down $0.241.