Friday Market Watch

LIVESTOCK:

There has been a generally bullish theme to the livestock prices this week as livestock owners pressed the advantage of a short supply situation, with the beef herd diminished by drought and with the supply of market-ready hogs staying current during a traditionally high-volume season. The Nov. 1 Cattle on Feed report showed only 11.7 million head in feedlots. At 98% of last year's Nov. 1 number, this result is even more bullish than pre-report expectations and will lend support to the recent gains in the deferred futures markets. The cash cattle market had a positive week, with most Southern live business transacted at $151 to $152, or $1 to $2 higher than a week ago. In Nebraska and Iowa, live prices ranged from $152 to $155 and dressed deals ranged anywhere from $236 to $244, so the weighted average is mostly steady with last week. On the National Direct Afternoon Hog Report, negotiated prices were down $1.46 to a weighted average price of $81.81 with prices ranging from $77 to $90 on 4,746 head, and the five-day rolling average was $84.74 per cwt. 

From Friday to Friday, livestock futures scored the following changes: December live cattle up $1.55, February live cattle up $2.60, January feeder cattle up $2.20, March feeder cattle up $1.975, December lean hogs down $0.125, February lean hogs up $1.15, December corn up 9 3/4 cents, March corn up 7 cents.

More: Friday Closing Livestock Market Update - Markets Flex to Show Strength 

GRAINS:

December corn ended up 1/4 cent and July corn was up 1 cent. January soybeans closed up 11 1/4 cents and July soybeans were up 11 1/2 cents. December KC wheat closed down 3 3/4 cents, December Chicago wheat was down 3 1/2 cents and December Minneapolis wheat was down 4 1/4 cents. 

For the week:

December corn closed up 9 3/4 cents and July corn was up 4 1/4 cents. January soybeans finished down 21 3/4 cents and July soybeans were down 17 3/4 cents. December KC wheat closed down 9 1/4 cents, December Chicago wheat was down 10 1/2 cents and December Minneapolis wheat was up 3 3/4 cents.

DAIRY:

Milk futures were under pressure the last half of the week as weakness began filtering into the market. Traders are mixed as to how they view the activity of the week. Some were reluctant to sell out of positions thinking prices will find support as orders will need to be filled for increased holiday demand. Others have been quick to exit their short-term positions. The weakness of butter increased the bearishness. Milk futures have had a nice run higher following the strength of underlying cash. Prices fell substantially one month ago seemingly for no apparent reason other than aggressive selling in the cash market moving buyers to the sidelines. Now, it is a month later and a decline in prices would not be out of the ordinary. Fill-in buying that takes place as orders are placed may drive prices higher until those orders are filled. Cash prices then decline with milk futures following. There is sufficient milk available to the market supplying increased cheese and butter production. Milk production is expected to remain strong through the end of the year and likely through the first quarter of next year. Cow numbers are expected to hold with culling taking place only as needed.

More: Friday Closing Dairy Market Update - Markets End on a Bearish Tone

FORAGE: This Week's Hay Markets Here (forage fodder blog)

OUTSIDE MARKETS:

The December U.S. Dollar Index is trading up 0.22 at 106.82. December crude oil declined $1.56 closing at $80.08 per barrel. The Dow gained 199 points closing at 33,746 while the Nasdaq gained one point ending at 11,146. December gold is down $12.20 at $1,750.80, December silver is down $0.05 at $20.93 and December copper is down $0.0520. December ultra-low sulfur diesel is down $0.0156, December RBOB gasoline is down $0.0549 and December natural gas is down $0.086.