Chinese Back Out of Hog Market, Futures Fall

Live-cattle futures finished higher on Thursday, bolstered by stronger export sales and investors taking profits after accurately betting that prices would fall. Lean-hog futures were mostly lower.

August live-cattle futures closed up 222 at $144, October cattle gained 217 at $142, August feeder cattle futures were off 27 at $210 while October feeder cattle were up 20 at $196

Lean-hog futures were mostly down after a government report showed exports were lower than the previous week, with China buying no pork supplies. Some wholesale pork prices also fell. Pork supplies remain ample, also weighing on prices. October lean hogs finished up 5 at 67.05, December hogs were off 25 at 62.05

Corn and soybean futures gained Thursday, advancing because of a recovery in global financial markets and increased optimism over demand for U.S. crops. Wheat declined.

Soybeans led the gains, lifting off the six-and-a-half year low posted in the previous session as an upswing in world stock markets calmed investors’ nerves and boosted hopes that demand for U.S. supplies would remain strong. Corn also lifted, supported by higher soybeans and stronger-than-expected demand, and Wheat fell to a three-month low, pressured by rising forecasts for world grain supplies and stiff competition for export demand.

September Soybeans, which are lightly traded, climbed 8 1/2 to $8.86, September corn added 2 to $3.63, September Chicago wheat shed 5 1/2 to $4.84, and September KC wheat dropped 2 to $4.64.

Cotton futures edged up on Thursday after several days of losses.  October cotton gained 127 to 63.83, and December new crop gained 84 to 63.35.

Gold prices fell on Thursday as gains in U.S. equities on the back of upbeat economic data and a stronger dollar dulled trader interest in haven assets.
December Gold fell $2 to $1,122.60, December silver closed at $14.42, up 35.9 cents.

Crude oil futures closed sharply higher on Thursday, largely on the stock market rebound and short covering.  October crude gained $4.16 to $42.76 a barrel, September gasoline gained 10 cents to close at $1.45 a gallon, and September diesel gained 12 cents to finish at $1.50 a gallon.

Natural gas prices fell Thursday as domestic inventories grew more than expected. September Natural gas, which were already in the red before the data was released, ended down 5.5 cents at $2.63.

Stock markets around the world rallied on Thursday, shaking off a slump related to China growth fears, as strong U.S. economic data boosted investor sentiment and crude oil rebounded sharply. On Wall Street, the Dow gained 369 to 16,654, the Nasdaq closed at 4,812, up 115, and the S&P 500 gained 47 to 1,987.

A native of the Texas Panhandle, Rhonda was born and raised on a cotton farm where she saw cotton farming evolve from ditch irrigation to center pivot irrigation and harvest trailers to modules. After graduating from Texas Tech University, she got her start in radio with KGNC News Talk 710 in Amarillo, Texas.