Market Recap: Grains & Oilseeds Bounce on USDA Reports

U.S. lean-hog futures finished mixed as the sharp rally in grain futures sparked big gains in deferred hog contracts. Hog contracts for October finished down 5 at 77.17 and December futures, the most actively traded, closed up 15 at 73.75. Both contracts were affected by traders' moves to square positions ahead of a key USDA supply report and before the end of the month.
 

U.S. live-cattle futures closed lower Friday as traders continue to duck what many perceive to be cooling demand for beef. October live cattle closed down 37 at $122 and ended the week near the 10-week lows they touched Wednesday. December cattle, the most actively traded, fell 47 to $124
 

At the livestock auction held Thursday in Smithfield a total of 726 cattle were sold. Slaughter cows trended 3.00 to 7.00 lower; bulls were mixed, 3.00 lower to 6.00 higher. M&L 1-2 feeder calves, 400-600 lbs., trended mixed.
 

At the state graded feeder cattle sale in North Wilkesboro, a total of 357 steers, 161 bulls and 397 heifers were sold.
 

U.S. corn futures jumped by their exchange-imposed daily limit Friday, after USDA reported lower-than-expected domestic inventories of the grain. Wheat futures also jumped Friday on lower-than-expected inventories. Soybean futures ended higher as well, buoyed by corn prices even though the USDA's supplies figure for soybeans was larger than analysts expected.

December Corn gained 40 cents to$7.56, December wheat in Chicago settled up 47 at $9.02, Kansas City Board of Trade December wheat jumped 49 1/4 to $9.27, and November soybeans gained 30 1/4 to$16.01.
 

No. 2 yellow shelled corn trended 12 to 40 cents higher when compared to last report. Prices ranged $7.46-$8.31 at feed mills and $7.13-$7.81 at elevators. No. 1 yellow soybeans 10 to 31 cents higher and were $16.61 at processors, and $15.51-$15.71 at elevators. No. 2 red winter wheat was not quoted. Soybean meal, f.o.b. at processing plants was $526.90 per ton for 48% protein.

Cotton futures slipped under pressure from stronger US dollar, which makes US cotton more expensive to foreign buyers. The uncertain global macroeconomic situation is also fueling demand fears, market participants say. December cotton fell a fraction to 70.65, and March also shaved off a fraction to finish the week at 71.68.

Gold futures eased Friday, as the U.S. dollar rose on waning enthusiasm about policy makers' handle on Spain's budget crisis. December gold fell $6.60 to $1,773.90, and December silver closed at $34.57, down 8.9 cents.
 

U.S. gasoline futures soared Friday–a jump some traders attributed to investors covering bets on lower prices as the current futures contract expired. October gasoline rose 19.8 cents to $3.34 a gallon, The dramatic rise in October gasoline futures didn't carry over to crude oil or other petroleum products. November crude gained 34 cents to $92.19 a barrel.
 

Natural gas futures rebounded late in the session to end higher Friday, adding a fourth day to the rally that has sent gas prices to new highs for the year. November Natural gas rose 2.3 cents to $3.32.
 

Wall Street closed its best third quarter since 2010 after a wave of central bank actions sparked a dramatic reversal in equity markets, but signs of weakness in the economy drove stocks lower on Friday. The Dow fell 48 to finish the month at 13,437,the Nasdaq closed at 3,116, down 20, and the S&P 500 fell 6 to 1,440.