28 October 2009

3 minute read

North America

LIVE CATTLE futures on the Chicago Mercantile Exchange (CME) were off on Monday. The October 2009 LC contract, scheduled to expire on Friday, closed off $0.225/cwt at $86.125/cwt. December 2009 LC futures closed at $87.150/cwt; down $0.250/cwt. Profit taking attacked the December contract amid strong technical resistance as spreading in the June/December added pressure on the later. Cash cattle were stronger with the 5-area USDA average price placed at $84.59/cwt; $3.73/cwt higher than this time last week. USDA early on Monday put the choice beef cutout at $139.93/cwt; up $0.91/cwt. According to HedgersEdge.com, average packer margins were lowered $11.00from a week ago to a negative $3.25/head based on the average buy of $83.74/cwt vs. the average breakeven of $83.49/cwt.

FEEDER CATTLE at the CME finished mixed on Monday. The October 2009 FC contract closed at $93.850/cwt; off $0.400/cwt. November 2009 FC futures closed at $95.875/cwt; up $0.400/cwt. MAR’10FC futures finished at $96.675/cwt; even with Friday’s close. The October contract moved lower ahead of expiration. Other contracts were supported by lower grain prices. The latest CME feeder cattle index was $93.27/lb; up $0.02/lb.

CORN futures on the Chicago Board of Trade (CBOT) finished off on Monday. December 2009 corn futures finished at $3.780/bu; down 19.75¢/bu. The May 2010 contract closed at $3.986; off 18.75¢/bu. A firmer dollar hurting exports and outlook for better weather pressured prices. USDA reported corn-inspected for export at 23.996 mi bu vs. expectations between 30-35 mi bu. Cash bids in the US Midwest were firm amid slow farm sales. Cash bids in the US Mid-Atlantic States were steady-to-weak down 6¢/bu -9¢/bu cents in many places. Hopefully you got to 80 per cent sold on last week’s advice.

SOYBEAN futures on the Chicago Board of Trade (CBOT) closed lower on Monday. November 2009 soybean futures closed at $9.860/bu; down 19.5¢/bu. The March 2010 soybean contract closed at $9.882/bu; off 18.5¢/bu. Profit taking, a firmer dollar, and improved weather weighed on the market. Exports were supportive with USDA reporting soybeans-inspected-for-export at 43.778 mi bu vs. expectations between 37-42 mi bu. China announced it would be importing about the same amount of soybeans in November as they did in October. Cash bids for soybeans in the US Midwest were steady-to-weak amid spotty farmer sales depending upon where the elevator was located. Cash beans in the US Mid-Atlantic States were steady. Hopefully the 2009 crop got to 80 per cent sold on last week’s recommendations.

WHEAT futures in Chicago (CBOT) fell on Monday. DEC’09 futures closed at $5.270/bu; off 20.75¢/bu. The July 2010 wheat contract closed at $5.670/bu; down 22.25¢/bu. Wheat followed corn and soybeans lower pressured by the same elements. However, the slow planting progress of the US soft red winter wheat crop was supportive. Exports were disappointing as USDA placed wheat-inspected-for-export at 14.336 mi bb vs. expectations for 15-20 mi bu. Philippine buyers spurned US wheat over Ukrainian wheat. If you haven’t done so already it is still a very good idea to get another 10 per cent of the ’10 crop priced taking you to 80 per cent priced at this time.