Friday Market Watch - Cattle on Feed Up 1%

 LIVESTOCK:

Friday's close came with some challenges for the livestock complex. Both the live cattle and feeder cattle contracts will likely be challenged on Monday as the market absorbs Friday's bearish Cattle on Feed report, and the lean hog complex will look for support in the form of strong pork cutout values. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $6.29 with a weighted average of $117.80 on 4,039 head.

From Friday to Friday, livestock futures scored the following changes: August live cattle up $1.38, October live cattle up $0.75; August feeder cattle up $1.88, September feeder cattle up $1.38; October lean hogs down $6.90, December lean hogs down $6.22; September corn down $0.14, December corn down $0.19.

Friday's slaughter is estimated at 122,000 head, 4,000 head more than a week ago and 5,000 head more than a year ago. Saturday's slaughter is estimated at 40,000. This week's slaughter is estimated at 661,000 head, 14,000 head more than a week ago and 5,000 head less than a year ago.

Boxed beef prices closed mixed: choice down $0.11 ($264.28) and select up $0.47 ($237.94) with a movement of 73 loads (41.80 loads of choice, 16.02 loads of select, 5.32 loads of trim and 9.98 loads of ground beef).

More: Friday Closing Livestock Market Update - Higher Placements Likely Means Lower Monday for Cattle

GRAINS:

September corn closed up 6 1/4 cents per bushel and December corn was up 7 1/2 cents. September soybeans closed down 6 3/4 cents and November soybeans were down 1 1/4 cents. December KC wheat closed up 31 3/4 cents, December Chicago wheat was up 22 cents and December Minneapolis wheat was up 22 1/4 cents. 

For the Week:

September corn closed down 13 3/4, with December corn down 19 cents. September soybeans closed down 46 1/4, with November down 50 1/4 cents. Kansas City September wheat closed down 44 1/2 cents, with Chicago Sep down 52 3/4, and Minneapolis Sep down 43 3/4 for the week.

DAIRY:

The action of Class III futures this week would give the impression the market was awash in milk as cheese prices fell substantially lower. Such is not the case as increased amounts of milk are moving to bottling for the school systems and the price movement of cheese for the week was mixed compared to last Friday. However, Class III futures eliminated any gains realized over the past two weeks. Milk continues to slow seasonally with hot weather still in place in areas of the country with corn silage harvest taking place or will be taking place in a few weeks. Milk production will eventually turn higher, but gains may be slow to unfold. An increase of cow numbers will be limited due to the tight supply of replacements. Growth will take place internally and will take time. Monday will be a day of reports with both the July Milk Production and July Cold Storage reports released. These reports should provide some price movement and possibly some market direction.

More: Friday Closing Dairy Market Update - Traders Turn Bearish

HAY MARKETS: Forage Fodder Blogger (link)

OUTSIDE MARKETS:

The September U.S. Dollar Index is trading up 0.610 at 108.025. December gold is down $8.80 at $1,762.40, September silver is down $0.45 at $19.02 and September copper is up $0.0255 at $3.6570.eptember crude oil gained $0.27 closing at $90.77 per barrel. The DOW declined 292 points ending at 33,707 while the NASDAQ declined 260 points closing at 12,705. September heating oil is up $0.0264, October RBOB is down $0.0210 and September natural gas is up $0.108.