Friday Market Watch - Doggish Week for Livestock, Grains Bullish, Milk Futures Strong

LIVESTOCK:

It was a tough week for the livestock complex as pressure built from multiple different angles. Next week the market could see some more pressure built as the complex looks holiday-related hiccups dead in the eye, but once Labor Day is behind the market, things should level out. The biggest fear cattle posses right now is surrounding the corn market and how much upside is withholds. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $7.37 with a weighted average of $110.25 on 4,433 head.

From Friday to Friday, livestock futures scored the following changes: August live cattle down $0.80, October live cattle down $2.20; September feeder cattle down $2.55, October feeder cattle down $3.38; October lean hogs down $2.47, December lean hogs down $1.20;

More: Friday Closing Livestock Market Update - Doggish Tones Stick With Cattle 

GRAINS:

September corn closed up 11 1/4 cents and December corn was up 14 1/4 cents. September soybeans closed up 52 3/4 cents and November soybeans were up 30 cents. December KC wheat closed up 16 cents, December Chicago wheat was up 16 1/4 cents and December Minneapolis wheat was up 13 3/4 cents. 

For the week:

September corn closed up 42 3/4 cents and December corn was up 41 cents. September soybeans ended up $1.16 1/2 and November soybeans were up 57 1/4 cents. December KC wheat closed up 35 1/4 cents, December Chicago wheat was up 34 1/4 cents and December Minneapolis wheat was up 22 1/2 cents.

DAIRY:

It has been a very good week for Class IV milk with support stemming from increasing butter and nonfat dry milk prices. Futures have increased about $3.00 in some contracts from the low 2 1/2 weeks ago. Class III futures have not moved quite that much but seem to be building a base of support. Cheese prices have not been as supportive to futures as butter price has been. Class IV futures indicate prices will remain above Class III for some time to come as Class IV futures are above Class III all through next year. There may be some limitation to the level at which Class III milk futures will increase unless cheese prices will begin to trend higher. The Pro Farmer crop tour took place this week and it showed a significant reduction of corn yields in many areas. The average yield for corn is 168.1 bushels per acre with a production of 13.759 billion bushels. This compares to USDA's estimate of 175.4 bushels per acre and a production of 14.359 billion bushels. Soybeans are estimated at 51.7 bushels per acre with a production of 4.535 billion bushels. This compares to USDA at 51.9 bushels per acre with a production of 4.530 billion bushels. This will mean higher corn prices.

More: Friday Closing Dairy Market Update - Milk Futures Close Strong for the Week

FORAGE: This Week's Hay Market (Link: Forage Fodder Blog)

OUTSIDE MARKETS:

The September U.S. Dollar Index is trading up 0.29 at 108.73. December gold is down $22.00 at $1,749.40, September silver is down $0.37 at $18.76 and September copper is down $0.010. October crude oil gained $0.54 ending at $93.06 per barrel. The DOW fell 1,008 points at 32,283 while the NASDAQ fell 498 points closing at 12,142. October RBOB gasoline is up $0.0183 and October natural gas is down $0.082.