Close - August 25, 2009
Corn
Corn prices closed lower and a dime off today's high price.
Basis bids for corn improved with several terminals 5 to 25
cents better earlier today. Gradual improvement over the
past couple of weeks on the crop conditions report supports
USDA projections of a bumper corn crop. Cooler than normal
weather is in the forecast through September 9th and could
delay crop development in the eastern Corn Belt and/or North
Dakota. Texas raises about 2% of the US corn production and
hot/dry weather has left southern Texas with a poor quality
corn crop according to the progress report this week.
Forecasts for the August 30th to September 3rd period show
Texas getting much needed rain in the drought stricken
central and southern portion of the state. The timing is
unfortunate, however, as producers in the southern portion
of Texas are already well along harvesting corn. September
Corn at $3.21 ½, down 8 cents December Corn at $3.26 ¾, down
8 ¾ cents
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Soybeans
September Soybeans finished higher testing the high that was
made on August 13th earlier in the session at $11.08. New
crop soybeans were lower. The decline in new crop prices was
attributed to crop improvement on yesterday's progress
report and ideas there will be enough time to mature the
crop before the fall frost hits. Temperatures this season
have averaged below normal for much of the growing season in
many states so far this year. Above normal precipitation in
the Delta states, forecast from August 30th to September
3rd, will prevent some of the mature crop in that area from
drying down as harvest approaches. Louisiana is already
harvesting in some areas. The September soybean meal did
close above earlier highs made this month and also closed
above the July highs but December contracts forward closed
lower following the decline in new crop soybeans. All months
of soybean oil were lower due to weakness in diesel.
September Soybeans at $10.91, up 11 cents November Soybeans
at $9.99, down 8 ½ cents September Soy meal at $358.00, up
11.80 points September Soy oil at 36.54 cents, down 57
points
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Wheat
Wheat futures finished mixed with the CBOT and MGEX slightly
lower and the KCBT wheat slightly higher but the wheat on
all exchanges closed on the lower end of the day's trading
range. Wheat had been 15 to 17 higher at one point today.
Japan's planned purchase of food grade wheat that included
Hard Red Winter kept the KCBT wheat firmer. Japan increased
their normal tender from 126,000 MT to 160,000 MT. Gulf
basis bids for August and September are 4 to 2 cents better
for CBOT wheat. Egypt is in the market for wheat to be
delivered the last week of September from optional origin.
According to the KCBT Cash Grain Committee protein premiums
are being paid for 12.2% to 14% protein. Premiums up to 60
to 75 cents are offered for 14% protein. September CBOT
Wheat at $4.71, down ¾ cent September KCBT Wheat at $5.04 ¾,
up 1 ½ cents September MGEX Wheat at $5.36 ¼, down 1 ¾ cents
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Cattle
Live Cattle futures closed steady to slightly higher. Boxed
beef prices were higher this afternoon on light demand and
offerings. Choice beef closed at $143.73, up .70 and Select
finished at $136.99, up 1.13. Monday saw a few numbers trade
in the five area direct cattle regions with prices averaging
$82.43 for Steers and $82.00 for Heifers for all grades on
the live basis. The Oklahoma City Feeder Cattle auction
exhibited moderate demand for feeder cattle and good demand
for calves. The supply included 77% over 600 pounds and 34%
heifers. Recent rains and cooler temperatures have grass
pastures in very good condition. Yesterday's crop progress
report showed 21% poor/very poor, a one point improvement
from last week and 52% good/excellent, a 2 point improvement
from last week. August Live Cattle at $85.45, up 27 cents
August Feeder Cattle at $99.95, down 15 cents
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Hogs
Lean Hogs prices closed higher trading inside yesterday's
price range. Pork prices were higher across the board to
support the futures, with light to moderate demand and
offerings. Carcass prices at 56.37, up 2.51, Loins at 65.76,
up .17, Butts at 59.74, up 1.89, Picnics at 38.92, up 3.80,
Ribs at 93.57, up 1.54, Hams at 56.18, up 7.11, and Bellies
at 57.64, unchanged. Iowa/Minnesota weighted average price
was $46.34 Monday. The Lean Hog Index closed at 49.21, down
.11 for August 21st. Total open interest was up 2,171
contracts on yesterday's drop in prices indicating possible
new shorts. Cash terminal hogs were steady to lower. October
Lean Hogs at $48.30, up 147 cents December Lean Hogs at
$47.10, up 110 cents
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Cotton
Cotton futures finished the day lower breaking to the
downside of the channel formation formed over the past six
trading sessions. Friday's cotton volume was 5,820 contracts
with 126,580 contracts in open interest. Rains coming into
West Texas this week should benefit the cotton crop. The
cotton crop was rated 19% poor/very poor, a two point
deterioration and 62% good/excellent, a 1 point
deterioration from last week. China's economic recovery
could stimulate purchase of US cotton. Global cotton
production has been declining recently in China, Brazil and
the US. India is picking up the slack somewhat with
increased production forecast in the August USDA WASDE
report. Conditions are generally favorable for cotton
development in central China even though they have had heavy
rains recently in some areas. The Indian monsoons have been
spotty but the cotton crop is apparently doing ok. The DJIA
made new five month highs but closed in the lower portion of
the daily range. The US Do llar Index is slightly higher.
October Cotton at 55.97 cents, down 95 points December
Cotton at 58.15 cents, down 92 points
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