Market Recap: Bottom Falls Out of Live Cattle Futures

The bottom fell out of live-cattle futures Tuesday as supply signs and bearish technicals converged. Most-active December closed limit down at $125 as front-month October dropped 260 to $122. Analysts say the market had been ripe for losses after Friday's USDA report signaled bigger-than-expected near-term cattle supplies, but the run for the exits today surprised many.
 

Hogs felt the weight of cattle's losses, with the front-month October ending a 6-session rally by falling 22 to 76.27. Most-active December dropped 70 to 74.65
 

At the livestock auctions held Monday at Siler City, Canton, and Turnersburg a total of 1545 cattle and 15 goats were sold. Slaughter cows trended $3.00 to $21.00 higher, feeder steers were steady to $14.00 higher, and feeder heifers trended mixed when compared to last week’s sales.
US grain and soy futures settled mainly lower, though modestly, with corn and wheat off on slower demand and seasonal harvest pressure. Analysts say traders aren't interested in taking on risk without signs of fresh demand. But soybeans rose after a 10% decline the past 2 weeks.

November soy gained 1 1/2 to $16.11 as December corn fell 1 to $7.43, December wheat in Chicago dropped 5 1/2 to $8.86 and December wheat in KC fell 2 ¼ to $9.11.
 

No. 2 yellow shelled corn trended 1 cent lower when compared to last report. Prices ranged $7.34-$8.18 at feed mills and $7.28-7.69 at elevators. No. 1 yellow soybeans trended 1 cent higher and were $16.71 at processors, and $15.62-$16.02 at elevators. No. 2 red winter wheat had no trend available. Soybean meal, f.o.b. at processing plants was $530.20 per ton for 48% protein.
 

N.C. EGGS: The market is steady on small and medium, higher on the balance. Supplies are moderate. Retail demand is good. Weighted average prices for small lot sales of Grade A eggs delivered to nearby retail outlets: Extra Large 161.44, Large 160.67, Medium 131.86 and Small 90.00.

Cotton futures ran out of steam late in the session, settling slightly lower on a lack of follow-through buying. December cotton fell 17 to 72.33, and near month October fell 20 to 70.81.

Gold futures held on to modest gains Tuesday as pressure from selling ahead of the expiration of Comex options offset gains made on reports of increased bullion purchases by central banks. September Gold rose $1.70 to $1763.80, and December silver closed at $33.94, down 3.6 cents
 

Crude-oil futures settled Tuesday at a near-two-month low of $91.37 a barrel down 56 cents amid concerns over weak demand and rising inventories. November gasoline gained 4.95 cents to $2.96 a gallon, the highest price since Sept. 14. November distillates gained a fraction to $3.10 a gallon.
 

On Wall Street, stocks fell on Tuesday as investors sought a catalyst to justify further gains and the euro was under pressure on concerns about a bailout for debt-laden Spain. The Dow fell 101 to 13,457, the Nasdaq closed at 3,117, down 43, and the S&P 500 lost 15 to 1,441.
 


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