Market Recap: Grains & Oilseeds Gain on USDA Reports
Lean-hog futures ended higher on recent strength in wholesale pork and the rally in corn. A recent slump in grain prices had weighed on lean-hog futures recently, particularly deferred contracts, as traders braced for an expected uptick in hog supplies. August lean-hogs ended up 87 to $101 while October lean-hogs closed up 122 to 86.25
U.S. live-cattle futures ended higher on strength in cash-cattle and wholesale beef prices, along with technical buying that pushed front-month futures to a three-month high. August live-cattle ended up 11 to $123, the highest closing price for the lead contract since early May. October live-cattle closed up 52, to $127.
Corn prices rose Monday after the U.S. Department of Agriculture cut its forecast for the size of this fall's crop, though the harvest would still be the nation's largest ever. The government also cut projected yields and production for the nation's soybean crop, sending soybean futures prices higher. The government's forecast for wheat production for the 2013-14 marketing year is 2.114 billion bushels, unchanged from the July reading. Analysts expected a forecast of 2.106 billion bushels. The wheat marketing year began June 1.
September Corn gained 6 1/4 to $4.72, August soybean futures rose 33 to $13.73, September wheat in Chicago rose 1 ½ to $6.35, and September KC wheat gained 3 to 7.00.
Cotton futures rallied Monday after the U.S. Department of Agriculture reduced its forecasts for production and ending stocks of the fiber this season. October cotton gained 101 to 90.06, and December new crop jumped 115 to 90.08.
Gold and silver futures climbed on Monday as data showing strong demand from top consumer China spurred investors who had bet on lower prices to close out those bets. December gold rose $22 to $1,334.20, September Silver gained 93 cents to $21.34.
Crude-oil futures added slim gains Monday, settling at a one-week high and awaiting direction from U.S. economic and oil-demand data in the coming days. September crude gained 14 cents to $106.11 a barrel, September gasoline dropped a fraction to $2.90 a gallon, while September distillates gained 2.74 cents to $3.02 a gallon.
Natural gas futures pushed higher Monday, notching the biggest one-day gain in nearly a month, as forecasts for hotter weather in late August boost expectations for demand. September Natural gas jumped 8 cents to $3.31.
On Wall Street, the Dow and S&P indexes dipped yesterday, extending losses from Wall Street’s worst week since June last week, but Apple and BlackBerry kept the Nasdaq index afloat. The Dow fell 5 to 15m419m the Nasdaq closed at 3,669, up 9 and the S&P fell almost 2 to 1,689.