Friday Market Watch

LIVESTOCK:

Gains in the live cattle futures market Friday look impressive on a one-day basis but were mostly just a correction of previous losses. Feeder cattle and lean hog futures posted milder performances. In the cash cattle market, light trade was reported in parts of the South at $155 to $156, which was $1 to $2 higher than the rest of the week's business and fully steady to $1 higher than last week's weighted averages. Northern dressed business has been marked at mostly $247, which was $2 lower than last week's weighted averages. The National Direct Afternoon Hog Report showed purchased swine prices up $1.96 to a weighted average of $83.07 on 10,209 head. Prices ranged from $74 to $85, and the five-day rolling average is now $83.41. 

From Friday to Friday, livestock futures scored the following changes: December live cattle up $0.33, February live cattle up $0.32; January feeder cattle up $1.48, March feeder cattle off $0.18; December lean hogs off $0.85, February lean hogs off $6.43; December corn unchanged, March corn off $0.02.

More: Friday Closing Livestock Market Update - Live Cattle Self-Correct with Triple-Digit Gains

GRAINS:

March corn closed up 1 1/2 cents and July corn was unchanged. January soybeans closed down 2 1/2 cents and July soybeans were down 2 1/2 cents. March KC wheat closed down 11 3/4 cents, March Chicago wheat was down 12 cents and March Minneapolis wheat was down 8 cents. 

For the week:

March corn closed down 2 1/4 cents and July corn was down 3 1/2 cents. January soybeans finished up 45 1/4 cents and July soybeans were up 37 3/4 cents. March KC wheat closed down 37 3/4 cents, March Chicago wheat was down 26 3/4 cents and March Minneapolis wheat was down 19 3/4 cents.

DAIRY:

Milk futures did not move much today with contracts closing mixed for both classes of milk. It was interesting to see how the sharp rebound of butter price had little impact on Class IV futures. This was likely due to futures not falling as much as would have been anticipated with the sharp decline yesterday. Class III futures did not increase as much as they should have with the increase of blocks today. The same scenario applies as traders are not moving futures as much as cash due to the choppiness of prices. USDA left the milk production estimate unchanged for this year at 227.0 billion pounds. The estimate for next year was raised 300 million pounds to the level of 229.5 billion pounds and will be another record high milk production. USDA was more positive on milk prices with the Class III price this year estimated at $21.95, up $0.15 from the November estimate. The average price for next year was raised $0.15 to $19.80. Class IV price was raised $0.20 to average $24.50 and reduced next year to $20.10, down $0.25 from the November estimate. The All-milk price was raised $0.15 this year to $25.65 and raised $0.10 next year to an average of $22.70.

More: Friday Closing Dairy Market Update - Milk Production Estimate Raised to 229.5 Billion Pounds

FORAGE: This weeks' hay markets (Forage Fodder Blog)

OUTSIDE MARKETS:

The December U.S. Dollar Index is trading up 0.02 at 104.78. January crude oil declined $0.44 ending at $71.82 per barrel. The Dow fell 305 points ending at 33,476 while the Nasdaq lost 77 points ending at 11,005. February gold is up $8.80 at $1,810.30, March silver is up $0.45 at $23.70 and March copper is down $0.0330. January ultra-low sulfur diesel is down $0.0958, January RBOB gasoline is up $0.0020, and January natural gas is up $0.348.