Market Recap: Hog Futures Continue to Lose on Supply Glut

Lean-hog futures lost about 4% last week after October futures dropped 40 to 71.35, December finished down -40 at 70.50. A huge run-up in supplies continues to weigh on futures and traders have a wide range of theories about when the losses will end.
 

Live-cattle futures finished mostly higher as traders continue to anticipate firm or higher prices in cash-cattle markets, which had yet to trade widely at the close of trade. October live cattle closed up 42 at $126 and December closed near unchanged at $129.
 

At the livestock auction held Thursday at Smithfield a total of 549 cattle and no goats were sold. Slaughter cows trended $1.50 to $2.00 higher, feeder steers trended $4.00 to $10.00 higher, and feeder heifers were steady to $5.00 higher when compared to last week’s sales.
 

STATE GRADED CATTLE SALE: At the state graded feeder cattle sale in Norwood, a total of 235 steers and 192 heifers were sold.

US soybean futures saw their descent steepen into the close as traders took profits amid a lack of supportive news and uncertainty about how much soybean yields have improved with rains in the last month. Meanwhile, corn turned slightly negative on psychological resistance at the $8/bushel level and weaker demand amid the high prices. But wheat stayed in the green, boosted by hopes for greater export demand and concerns about dryness in Australia and the US Plains. Nov soybeans fell 10 1/2 to $17.36 as December corn rose 1 to $7.99, December wheat in Chicago climbed 13 1/4 to $9.05, and December wheat in KC gained 11 ¾ to $9.23.
 

No. 2 yellow shelled corn trended 1 cent higher when compared to last report. Prices ranged $7.80-$8.74 at feed mills and $7.84-8.35 at elevators. No. 1 yellow soybeans trended 11 cents lower and were $17.96 at processors, and $16.87-$17.42 at elevators. No. 2 red winter wheat trended 13 cents higher. Prices were $8.05 at the elevators. Soybean meal, f.o.b. at processing plants was $586.60 per ton for 48% protein.

Cotton futures ticked higher Friday amid the dollar's slump. Meanwhile, Morgan Stanley expects "a relatively benign "USDA supply/demand report this week, The investment bank also sees some upside to India's production, based on a higher-than-expected planted area. December cotton gained 31 to 76.30, and near month October gained 13 to 75.72.

Gold climbed Friday as a weaker-than-expected U.S. jobs report bolstered investor hopes that the Federal Reserve would soon prop up the economy with a third round of stimulus. December gold rose $34.90 to $1,740.50, and December silver gained 90 cents to $33.60.

U.S. crude futures rose Friday after bouncing between gains and losses as a weak report on the U.S. job market raised the possibility of additional central-bank stimulus.

October crude gained 89 cents to $96.42 a barrel, October gasoline gained settled 2.86 cents to $3.01 a gallon, and October distillates rose a fraction to $3.14 a gallon.
 

Natural gas futures slumped to their lowest level in more than a week Friday, as traders weighed a growing glut of natural gas and falling temperatures likely to curb demand. October Natural gas fell 9.4 cents to $2.68.
 

Stocks held steady at four-year highs on Friday, closing out their best week since June as a sharply disappointing jobs report only fueled expectations that the Federal Reserve would act to stimulate the economy next week. The Dow gained 14 to finish the week at 13,306, the Nasdaq closed up a fraction at 3,136, and the S&P 5oo gained 5 to close at 1,437.