By: NATHAN STUEDLE
GRAINS:
December corn closed down 3 3/4 cents and March corn was down 3 1/2 cents. November soybeans closed up 1 1/2 cents and January soybeans were up 1 3/4 cents. December KC wheat closed down 6 3/4 cents, December Chicago wheat was down 7 1/4 cents, December Minneapolis wheat was down 5 1/4 cents.
For the Week:
December corn closed down 2 cents and March corn was down 2 1/2 cents. November soybeans closed down 11 3/4 cents and January soybeans were down 11 3/4 cents. December KC wheat closed down 1 3/4 cents, December Chicago wheat was down 2 3/4 cents and December Minneapolis wheat was up 1/4 cents.
It was another slow day for ag markets to close the week as grain and oilseed markets mainly adhered to technical signals ahead of the weekend break. The biggest ag news for Friday was President Trump's comments late Thursday that the administration plans to disperse part of the revenue generated from tariffs as an aid package to U.S. farmers who are hurting amid low prices. The market reaction to this news was muted, although there was perhaps some bearish undertones in the implication of President Trump's statement that farmers will continue to be hurt "for a little while" being that ag-centric trade agreements may not be close currently. In outside market news, Personal Consumption Expenditure data came in as expected with the core index showing a 2.9% inflation reading, steady with July, and likely keeping the Federal Reserve's path to rate cuts in upcoming meetings clear. Energy markets were also firm Friday, with November crude oil futures trading to their highest level since early August.
LIVESTOCK:
After starting the day off with a rocky start, the live cattle complex thankfully traded mostly higher into Friday's closing bell, but with the market's deferred contracts again seeing the biggest daily increases. The spot December contract is thankfully back to trading slightly above the market's 40-day moving average, which will continue to be an important threshold to monitor, as a close beneath that price point could indicate continued downward pressure. Thus far this week Northern dressed cattle have traded at mostly $365, which is $6.00 lower than last week's weighted average and Southern live cattle have been marked at mostly $237, which is $3.00 lower than the previous week's weighted average.
The feeder cattle complex also trading higher into Friday's noon hour as the market continues to closely track alongside the live cattle market. Unlike the live cattle market, however, the feeder cattle contracts saw more steady gains throughout all the contracts, nearby and deferred. The spot November contract is currently trading above the market's 40-day moving average, and hopefully, with continued strong sales in the countryside, the market should be able to close above that threshold so long as nothing dramatic happens.
Feeling empowered by Thursday's Quarterly Hogs and Pigs report and by the morning uptick in pork cutout values, the lean hog complex traded fully higher into Friday's close. As a matter of fact, the market is currently seeing the spot December contract reach new contract highs as fundamental support is ample. The market will likely be able to sustain this momentum at least in the short term.