Market Recap: High Feed Prices Filter Down to Livestock Futures

The latest run-up in livestock feed prices tied to the ongoing U.S. drought rippled through livestock futures Tuesday, posing the risk of higher near-term supplies but lower meat production next year. Lena-hog futures were more narrowly mixed than cattle futures. October Hog futures closed down 10 at 75.80, the December contract fell 55 to 73.05. October live cattle lost 85 to close at $124, and September feeders fell 167 to $141.
At the livestock auctions held Monday at Canton, Siler City, and Turnersburg a total of 1,124 cattle and 32 goats were sold. Slaughter cows trended steady and feeder calves were steady to 15.00 lower when compared to last week’s sales.
 

US corn and soybean futures rallied into the close, based off poor yield observations from a Midwest crop tour. Spot corn futures ended at a record closing high. Traders are attempting to find price levels that reflect smaller crops while slowing demand as well, analysts say. Wheat futures were pulled higher with corn and soybeans. November soybeans gained up 49 to $17.32; September corn gained 16 to $8.31; December wheat in Chicago ended up 19 1/4 at $9.22, and December wheat in KC gained 17 to $9.32.
 

No. 2 yellow shelled corn trended 15 to 18 cents higher when compared to last report. Prices ranged $8.28-$9.06 at feed mills and $8.23-8.78 at elevators. No. 1 yellow soybeans trended 49 cents higher and were $17.92 at processors, and $16.87-$18.04 at elevators. No. 2 red winter wheat trended 15 cents higher. Prices were $8.04-$8.36 at the elevators. Soybean meal, f.o.b. at processing plants was $603.60 per ton for 48% protein.
 

Daily North Carolina Eggs
 

The market is steady on small and medium, lower on the balance. Supplies are heavy. Retail demand is light.

Cotton futures rallied, buoyed by a weaker dollar and concerns about dry weather in several growing regions. December cotton gained 247 to 77.30, and near month October gained 228 to 76.45.

Gold climbed to a three-month high while silver settled at its highest level in more than 10 weeks Tuesday, on the back of a stronger euro and optimism about Europe. December gold rose $19.90 to $1,642.90, September silver gained 83.5 cents to $29.42
 

Crude-oil futures hit their highest settlement price since May amid market optimism that struggling euro-zone nations will receive regional assistance to strengthen their economies. September crude rose 71 cents to $96.68 a barrel, September gasoline rose 3.44 cents to $3.06 a gallon, and September distillates rose 3.12 cents to $3.12 a gallon.
 

After trading in a positive range for much of the day, natural gas veered into negative territory late in the session and closed marginally lower. September Natural gas closed down a fraction at $2.80.
 

On Wall Street, stocks fell on Tuesday after the S&P hit its highest level in four years as the benchmark index faced technical resistance and traders cashed in recent gains. The Dow fell 68 to 13,203, the Nasdaq closed at 3,067, down almost 9 and the S&P 500 lost almost 5 to close at 1,413.