Livestock futures ended the week sharply lower as traders reacted to softening cash markets.
Prices for physical cattle and hogs have been steady to lower this week. With supplies for both forecast to grow next year, analysts expect further pressure on cash prices ahead. The same USDA report also forecast higher beef and pork production and supply next year. The agency increased its per capita consumption projections for 2018, but trimmed pork exports. Hog producers say they are increasingly reliant on exports to offload the extra supply, particularly after two new slaughterhouses opened in September and farmers increased their herd sizes in anticipation.
December Live cattle fell 190 to $120, February dropped 177 to $126, and November feeders closed unchanged at $158.
December lean hog futures fell 70 to 62.47, February gained 2 to 70.25.
Corn and soybean futures rebounded on Friday as traders absorbed a government report projecting larger-than-expected harvests. Traders were content to consolidate the current prices, analysts said, after futures had fallen sharply in the wake of USDA’s Thursday report. Some analysts said they expected futures to remain tethered to current price levels for the foreseeable future. Wheat futures led gains for much of Friday’s session after the USDA cut domestic and global supply forecasts.
December corn rose 2 to $3.43, January soybean contracts gained 2 to $9.87, December Chicago wheat rose 2 ½ to $4.3, and December KC wheat gained 4 ¼ to $4.33.
Cotton futures rebounded into the weekend with the December contract gaining 76 to 69.05, and March gaining 60 to 69.14.
Oil futures bfell on Friday as fears of a major disruption in the Middle East eased, after prices soared over the past week as top exporter Saudi Arabia detained hundreds of individuals in a corruption investigation.
December crude fell 43 cents to $56.74 a barrel, Gasoline futures fell a fraction to $1.81 a gallon, and Diesel futures fell 1.2 cents to $1.93 a gallon.
Natural gas futures rose for a seventh straight session Friday, extending a rally prompted by cold-weather forecasts and a below-average addition to stockpiles last week.
December nat gas rose 1.3 cents to $3.21.
Stocks on Wall Street ended nearly unchanged on Friday, with losses in Intel and Apple as investors worried about the future of promised corporate tax cuts following dueling plans unveiled by Republican U.S. lawmakers. The Dow fell 39 to 23,422, the Nasdaq closed at 6,750, up a fraction and the S&P 500 fell 2 to 2,582