Soybean Futures Soar on Adjusted USDA Numbers

Cattle futures fell Thursday as traders waited for the week’s cash trade to kick off.

October live-cattle futures fell 142 to $112, easing after a week of gains.  The December contract fell 125 to $117, and October feeders fell 60 to $153.

Hog futures, meanwhile, also eased after climbing earlier this week. October lean-hogs fell 55 to 60.70, December dropped 87 to 61.62.

In a monthly supply and demand report, USDA forecast higher beef and pork production in 2018 as herd sizes and slaughter numbers increase. The agency also expects red-meat exports to rise.

Soybean futures rose on lower-than-expected government crop forecasts.

On Thursday, USDA predicted that soybean production would be unchanged from the September report, but the agency lowered its yield estimates to 49.5 bushels an acre–down from 49.9 bushels a month earlier–offsetting higher acreage.

That was a surprise to traders expecting the soybean crop, over a third of which is harvested, to get bigger. The agency also lowered its domestic and global oilseed stockpile forecasts.

November soybeans rose 26 ¾  to $9.87.

That momentum helped pull corn prices higher too, despite government projections showing larger supplies.

Global wheat stocks for 2016-17 and 2017-18 also rose on larger harvest projections in Russia, the European Union and India. Russia’s wheat harvest is expected to hit a new record this year, blowing past a previous record set in 2016.

December Chicago wheat futures fell 2 ¾  to $4.32, December KC wheat fell 2 ¾ as well to $4.30, and December corn gained 3 to $3.49.

Cotton futures fell on Thursday with the December contract dropping 89 to 67.84, and March falling 93 to 67.37.

Crude Oil futures fell Thursday, as concerns that rising U.S. production will offset efforts to rebalance the market resurfaced.

U.S. crude futures closed down 70 cents, or 1.4%, at $50.60 a barrel, Gasoline futures fell 2.60 cents, or 1.6%, to $1.5832 a gallon after the EIA report showed an unexpected increase in stockpiles. Diesel futures fell 2.06 cents, or 1.2%, to $1.7655 a gallon.

Natural-gas prices rose Thursday, boosted by investor bets on colder temperatures and data showing an addition to stockpiles last week that was roughly in line with expectations.

November nat gas rose 10 cents to $2.98.

On Wall Street, stocks edged lower on Thursday as bank shares fell following quarterly results from JPMorgan and Citigroup, while AT&T tumbled 6 percent after it said it lost subscribers in the last quarter.  The Dow fell 31 to 22,841, the Nasdaq closed at 6,591, down 12 and the S&P 500 fell 4 to 2,550

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.