DTN's Quick Takes
Periodic Updates on the Grains, Livestock Futures Markets
Posted 11:26 -- USDA's August WASDE report revealed both corn and bean yields higher than the trade had expected. Corn crop estimated to be 15.278 bb with a yield of 181.8 bpa, about 1.5 bpa higher than the estimate. Soybean production pegged at 4.425 bb with a record-large yield of 53.3 bpa, above the high side of Dow Jone's pre-report estimate of 51.3 bpa. Wheat production came in at 1.837 bb, slightly higher than expected. U.S. ending stocks of corn and wheat came in slightly below estimates, while bean ending stocks at 610 mb were about 83 mb higher than expectations. World corn and bean ending stocks were slightly less than expected, while world wheat stocks were record large at 316.79 mmt. Corn is trading higher than before the report, while beans and wheat have moved little.
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Posted 10:32 -- December corn is down 2 1/4 cents per bushel, November soybeans are up 1/2 cent, September KC wheat is down 2 3/4 cents, September Chicago wheat is down 3 3/4 cents and September Minneapolis wheat is unchanged. The Dow Jones Industrial Average is up 251.46 points and September crude oil is up $0.83 per barrel. The U.S. Dollar Index is down 0.270 and December gold is up $2.70 per ounce. Soybeans are getting only mild support from more sales to China and unknown. Corn is under pressure ahead of what is expected to be a bearish yield and production report from USDA. December corn is within a penny of the contract low. Minneapolis wheat is inches away from a new contract low.
Posted 09:37 -- December corn is down 3/4 cent per bushel, November soybeans are up 1 1/4 cents, September KC wheat is down 2 cents, September Chicago wheat is down 1 3/4 cents and September Minneapolis wheat is up 1/2 cent. The Dow Jones Industrial Average is up 288.51 points and September crude oil is up $0.90 per barrel. The U.S. Dollar Index is down 0.260 and December gold is up $6.60 per ounce. Ethanol production fell again last week, declining 13,000 barrels per day (bpd) to 918,000 bpd. Compared to last year, that is still down 12.2%. Ethanol inventory fell to 19.7 million barrels from 20.3 million last week, or 2.9%, and that compares to 23.9 mb last year.
Posted 08:33 -- December corn is down 1/4 cent per bushel, November soybeans are up 1 cent, September KC wheat is down 2 1/2 cents, September Chicago wheat is down 3 3/4 cents and September Minneapolis wheat is down 3/4 cent. The Dow Jones Industrial Average is up 258.18 points and September crude oil is up $0.84 per barrel. The U.S. Dollar Index is down 0.270 and December gold is up $8.50 per ounce. More new soybean sales were announced to China and unknown early on Wednesday. A total of 258,000 mt (9.5 million bushels) were sold to China and an additional 120,000 mt (4.4 mb) were sold to unknown destinations. Sales for August to date to combined China and unknown are now roughly 82.4 mb.
LivestockOMAHA (DTN) -- October live cattle are up $1.38 at $109.675, September feeder cattle are up $1.93 at $148.55, October lean hogs are down $0.65 at $51.175, December corn is up 1 3/4 cents per bushel and December soybean meal is down $0.90. The Dow Jones Industrial Average is up 256.33 points and NASDAQ is up 235.09 points. Cash cattle trade has surprised most as Wednesday morning's Fed Cattle Exchange pushed prices to $104 to $104.50, which is $4.00 stronger than last week's weighted average. Meanwhile cattle contracts continue to rally while the lean hog complex regresses as uncertainty still lingers.
Posted 10:29 -- October live cattle are up $1.30 at $109.6, September feeder cattle are up $1.83 at $148.45, October lean hogs are down $1.10 at $50.725, December corn is down 2 1/4 cents per bushel and December soybean meal is down $0.60. The Dow Jones Industrial Average is up 239.13 points and NASDAQ is up 212.98 points. The Fed Cattle Exchange Auction listed a total of 890 head in Kansas and Texas only, with 602 actually sold, 288 head listed as unsold and zero head listed as PO (Passed Offer). The state-by-state breakdown looks like this: Kansas 531 total head, of which 457 head sold at $104 to $104.50, that left 74 head unsold; Texas 359 total head, of which 145 head sold at $104.50, that left 214 head unsold. The delivery date/weighted averages breakdown is as listed: one- to 9-day delivery: 562 head total, of which 348 head sold, with a weighted average price of $104.50; one- to 17-day delivery 328 head total, of which 254 head sold, with a weighted average price of $104.27.
Posted 08:33 -- October live cattle are up $0.28 at $108.575, September feeder cattle are up $0.33 at $146.95, October lean hogs are up $0.08 at $51.9, December corn is down 1/4 cent per bushel and December soybean meal is steady. The Dow Jones Industrial Average is up 287.09 points and NASDAQ is up 105.01 points. Cash cattle trade is expected to develop throughout the day and could develop midmorning after the Fed Cattle Exchange. Feeders are hoping for another week of strong trade and hope that boxed beef demand sees a spike as consumers prepare for the Labor Day weekend that's not too far away. Watching how feeder cattle contracts trade after breaking through the resistance plane will be critical as there's plenty of pressure for the market to scale lower.
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