Market Closes and Weekly KY Cattle - September 28, 2012

Posted on Sep 28, 2012
  The super rally in the CBOT futures resulted from the surprisingly low September 1 st Corn Stocks Inventory reported today by USDA. Since the December and March contracts closed limit up (40 cents), the daily price limit expands to 60 cents (up and/or down) on Sunday evening when the electronic trading opens.

  USDA adjusted the 2011 soybean production estimate based on several data points; the average yield was raised 0.4 bushels to 41.9 bu/acre, resulting in 37.5 million more production, or 3.09 billion bushels.  This helped raise the September 1st soybean stocks number above expectations.  However, the bullish corn report trumped any bearishness suggested by the soybean stocks estimate. Announcements of soybean sales to China this week is also supportive.

  Wheat futures soared as well in sympathy with corn futures and from USDA’s high estimate of the amount of wheat used for livestock feed during the June/July/August quarter.

  Live Cattle futures dropped on significantly weaker fed cattle prices and a sharp drop in boxed beef values.  Today, Choice DN 3.06 at 188.98; Select DN 2.66 at 177.85.

  Ahead of this afternoon’s Hogs and Pigs Report, the main action was a rally in the deferred contracts in response to soaring CBOT futures that should reduce the swine inventory in 2013. The report’s numbers came in close to expectations, so should have little effect on Monday.

 ** Remember the KY Stocker Conference on Monday at the Fayette County Extension Office **

 Corn Dec +40 756; Mar +40 759.5; Dec’13 +22 630.5

Bean Nov +30 1601; Mar +40 1564; Nov’13 +23 1338   Meal Oct +14 487;  May +19 447   Oil +7 5218

Wheat Dec +47 902; Jly +31 867    KC +49 927;  MGE +44 958

LC Oct -37 12207; Dec -47 12470; Apr -37 13252

FC Oct -242 14380; Nov -297 14435; Jan -262 14737

LH Oct -5 7717; Dec +15 7375; Apr +165 8755

Milk Oct +8 2086; Nov +15 2083

Oats +2 370

Rice +31 1547

US$ +.4%

Dow -49 13437

SP -6 1441

NAS -20 3116

Tran -49 4893

  VIX +.89 15.73

WTI +34 9219

Brent +32 11233

Gas +2 292

NG +2 332

HO +1 316

Eth +12 234

Gold -6 1771

Slvr -9 3458

2-yr -.020 0.234%

5-yr -.017 0.625%

10yr -.022 1.633%

30yr -.019 2.823%

 Kentucky Weekly Livestock Summary for September 21-September 27, 2012

Receipts This Week   Last Week  Last Year    23,427      20,114      22,905

Supply:  Slaughter Cows 10 percent; Slaughter Bulls 3 percent; Feeder cattle 85 percent.  In the feeder supply, Steers made up approximately 32 percent and Heifers approximately 39 percent.  Steers and Heifers over 600 lbs totaled approximately 42 percent.  Replacement cattle 2 percent.

 Compared to last week:  Feeder Steers and Heifers ended the week mostly steady with some instances of 1.00-2.00 higher early in the session.  Steer calves and heifer calves sold uneven.  Early week calf markets steady to as much as 4.00 higher; sales closing out the session reporting from steady to 2.00 lower.

   Demand good for feeders; moderate to good for calves.  After several weeks of continued higher markets, buyers beginning to rein-in feeder prices as feedlots accept steady money last week for finished cattle and settle for 3.00 lower this week as harvest rates continue to trail last year.  Continuing to see a good number of feeders coming off grass and some barns beginning to see new crop calves in larger numbers.  Slaughter cows and bulls steady to 3.00 lower.

 US Hog Inventory Up Slightly       United States inventory of all hogs and pigs on September 1, 2012 was 67.5 million head. This was up slightly from September 1, 2011, and up 3 percent from June 1, 2012.  Breeding inventory, at 5.79 million head, was down slightly from last year, and down 1 percent from the previous quarter. Market hog inventory, at 61.7 million head, was up slightly from last year, and up 3 percent from last quarter.

http://usda01.library.cornell.edu/usda/current/HogsPigs/HogsPigs-09-28-2012.pdf

 

 

 

Tagged Post Topics Include: Economics, Market updates