Market Recap: Rising Supply Fears Hit Hog Futures
U.S. lean-hog futures tumbled Wednesday as fears over rising supplies were reinforced by a rebound in corn futures, which could keep pressure on hog farmers to thin herds. Hog contracts for October tumbled 182 to 75.60, the lowest price for the spot contract in nearly 20 months. December hog futures lost 155 to 73.27
Live-cattle futures finished narrowly mixed but lower-volume feeder cattle fell after the gains in corn futures. August Live-cattle were up 12 to $122, Feeder-cattle futures were lower as the gains in corn futures encouraged some traders to take profits from a recent rally. August feeders closed down 85 at $142.
At the livestock auction held Tuesday at Mount Airy a total of 340 cattle and 58 goats were sold. Slaughter cows trended steady to 3.50 lower and feeder calves were mixed when compared to last week’s sales.
Daily North Carolina Eggs: The market is lower on all sizes. Supplies are heavy. Retail demand is light.
U.S. soybean futures jumped Wednesday, as stronger cash markets raised expectations for more export demand and traders remained concerned about a tight supply outlook. Corn futures also ended higher, lifted by soybean prices and continued concerns about tight corn supplies. Drought has drastically reduced the amount of corn expected to be harvested in the U.S. this year. Wheat futures followed soybeans and corn higher. Some traders bought wheat on expectations for price gains after a three-day selloff
September soybeans gained 36 1/4 to $16.59, September corn rose 14 1/4 to $7.94, September wheat in Chicago rose 7 to $8.46, and Kansas City Board of Trade September wheat rose 6 to $8.58.
No. 2 yellow shelled corn trended 15 cents higher when compared to last report. Prices ranged $7.94-$8.71 at feed mills and $7.89-8.44 at elevators. No. 1 yellow soybeans trended 36 cents higher and were $16.84 at processors, and $15.89-$17.10 at elevators. No. 2 red winter wheat was trending 7 cents higher. Prices were $7.67-$7.82 at the elevators. Soybean meal, f.o.b. at processing plants was $585.00 per ton for 48% protein.
Cotton futures rose in thin trade Wednesday as the market wrestles with its supply-and-demand picture. December cotton gained 102 to 73.11, and the October contract gained 112 to 72.71.
Oil futures rose to their highest level in three months Wednesday following a report of a steep drop in U.S. oil stockpiles and fresh tensions in the Middle East.
September crude gained 90 cents to $94.33 a barrel, September gasoline soared 8.26 cents to $3.08 a gallon, and September distillates gained 5.06 cents to $3.08 a gallon.
Natural-gas futures declined Wednesday as forecasters called for lower temperatures across parts of the U.S. and investors awaited weekly government data on U.S. gas stockpiles. September Natural gas fell 8.6 cents to $2.74.
On Wall Street, stocks were little changed on Wednesday for the third day on low volume and with few catalysts to give investors direction. The Dow fell 7 to 13,165, the Nasdaq gained almost 14 to 3,030, and the S&P 500 gained 1 to 1,405.