Ag Week Recap - Week of Sept. 21

All livestock futures finished lower on Friday expect for the front three months for live cattle. Cattle futures rallied early last week, but fell off sharply midweek, which locked in weekly losses.

USDA announced the second port of entry for Mexican live cattle imports will open this week in Santa Teresa, N.M. Another week of only light volume cash fed cattle trade was reported through the mandatory price reporting system. Northern trade was done at $222 to $223 live and $350 to $355 dressed, steady with the week previous. Some live trade may have happened finally in the South late Friday and over the weekend at $225 to $226, steady to $2 higher.

After the close, USDA released another bullish monthly cattle on feed report. Cattle and calves on feed totaled 11.2 million head on Sept. 1, up only 0.7 percent from last year with expectations for a two percent year over year increase. Placements in August totaled 1.62 million head, 9.2 percent below a year ago and for the second month in a row, the lowest since the series began in 1996.

Marketings of fed cattle during August totaled 1.52 million head, 3.3 percent below last year, but slightly better than expected.

Weekly closes for livestock futures and meats: October live cattle were down $3.75, December was down $5.60, September feeder cattle were down $4.25, October was down $9, January was down $11.77, October lean hogs were down $3.42 and December was down $4.15. Choice boxed beef was down $4 at $371.94 and pork carcass cutout was down $2.82 at $86.98.

Cattle slaughter last week was estimated at 529,000 head, up 24,000 from the week previous but down 30,000 from last year. Beef production was estimated at 469.3 million pounds last week with year-to-date down 5.1 percent versus last year and year-to-date slaughter down 7.5 percent.

Hog slaughter last week was estimated at 2,490,000 head, up 221,000 compared to the week previous but down 102,000 compared to a year ago. Pork production was estimated at 528.5 million pounds last week with year-to-date now down 0.1 percent versus last year and year-to-date slaughter is down one percent.

October live cattle hit a recent high last week at $222.82 with resistance next around $230 and support at $209.50. September feeders’ new recent high was last Monday at $343.97 with resistance up at $350 and support at $326. October lean hogs were only one tick away from the contract low at $77.95 while deferred contracts continued to make new contract lows last week.

Grains pulled back last Friday, locking in week over week losses for corn and wheat, but beans were still able to post a positive week. Weekend profit-taking was to blame along with little new news.

Meal led the soy complex higher last week, hitting new two-year highs, but was also the leader lower on Friday. Grain and oilseeds were choppy all week with fall harvest slowing done due to a very wet week for most and increased airstrikes in the Middle East and around the Black Sea. Harvest will be slow to ramp back up this week, and winter wheat planting and emergence should pick up.

Weekly closes for grain and oilseed futures: December corn was down $.02¾, March was down $.04, November soybeans were up $.07, January was up $.08, December Chicago wheat was down $.11, March was down $.11¼, December Kansas City wheat was down $.14¾, March was down $.14¾, December Minneapolis wheat was down $.03¾ and October soybean meal was up $6.40 per ton.

Heavy rains for this week are expected from the Southwest up into the Central Plains with much cooler temperatures. The National Weather Service six-to-10-day outlook still shows above normal temperatures and above normal precipitation for the majority of the country, near normal temperatures on both coasts and below normal precipitation for the Eastern Corn Belt and upper Midwest.

December corn hit a new contract high on Sept. 2 at $5.49¾ with support at $5.23. November soybeans hit a new contract high on Sept. 11 at $13.35¼ with support at $12.90.

December Chicago wheat hit a contract high on Sept. 2 at $7.95, but have been holding a lower trend since with support at $7.10. December Kansas City wheat hit a contract high at $8.58¼ with support at $7.78. December Minneapolis wheat hit a contract high at $7.94¼ with support at $7.30.

October soybean meal went up to a new two-year high last week at $372.9 with the contract high at $397.5 and support at $346.

Note: There is risk of loss in trading commodity futures and options. Matt Hines is a licensed commodity broker for Loewen and Associates, Inc. of Manhattan, specializing in grain and livestock operations as well as commercial consulting clients since 2004. He can be reached at (785) 289-0036.