By: NATHAN STUEDLE
GRAIN MARKET SUMMARY
Grain futures finished sharply lower Thursday, with wheat leading the losses as corn and soybeans also retreated. The widespread selling followed the strong rally earlier in the week that was sparked by USDA's November supply-and-demand report.
Wheat futures experienced the heaviest selling pressure, with double-digit losses in both Chicago and Kansas City contracts. December Chicago soft red winter wheat plunged 15¼ cents to settle at $5.84¼ per bushel, falling back below the $6 level. March futures declined 15 cents to close at $5.99¼, while May wheat dropped 15½ cents to finish at $6.05. Kansas City hard red winter wheat suffered even greater losses. December futures tumbled 17¼ cents to settle at $6.22¼ per bushel, while March contracts declined 17½ cents to close at $6.32¼. May Kansas City wheat lost 16¾ cents to finish at $6.36.
Soybean futures also moved sharply lower Thursday, giving back a portion of the gains recorded following Tuesday's USDA report. November soybeans declined two cents to settle at $12.27 per bushel, while January futures dropped 11¾ cents to close at $12.19. March soybeans fell 13 cents to finish at $12.25, and May futures lost 14¼ cents to settle at $12.32½. Despite Thursday's weakness, nearby soybean futures remain substantially higher than Monday's levels. However, competition from Brazil, uncertainty surrounding Chinese purchases and expectations for substantial South American production continue influencing market sentiment.
Corn futures followed the broader grain complex lower, with moderate losses across all contract months. December corn declined 5½ cents to settle at $4.42½ per bushel, while March futures lost 5½ cents to close at $4.54¾. May corn also slipped 5½ cents to finish at $4.62¾. USDA's November report lowered its national corn yield estimate to 179.6 bushels per acre and reduced projected production to approximately 15.9 billion bushels. Although the smaller production estimate provided support earlier in the week, traders continue balancing tighter supplies against substantial overall inventories and uncertainty surrounding future demand.
Overall, Thursday's grain trade reflected widespread selling pressure as the markets struggled to maintain the gains generated by USDA's November report. Attention now turns toward Friday's export sales figures, Chinese purchasing activity and South American growing conditions as traders look for additional direction heading into the weekend.
LIVESTOCK MARKET SUMMARY
Livestock futures finished mixed Thursday, with feeder cattle extending their impressive recovery, live cattle posting gains in most contract months and lean hog futures struggling to establish consistent direction. The session continued a week of improving cattle prices following the sharp downturn experienced earlier this month.
Feeder cattle were once again the strongest performers, with gains exceeding three and four dollars per hundredweight across several contract months. November feeder cattle jumped $3.05 to settle at $335.67 per hundredweight, while January futures climbed $3.87 to close at $331.67. March feeder cattle surged $4.15 to finish at $328.27, and April contracts gained $4.17 to settle at $327.25. May feeder cattle advanced $4.10 to $325.62, while August contracts gained $3.85 to close at $326.60. The continued advance marks a significant turnaround from last week's steep losses. November feeder cattle have gained more than thirteen dollars per hundredweight since Friday's settlement, reflecting renewed buying interest across the cattle complex.
Live cattle futures posted a more subdued performance, with nearby December contracts slipping slightly while deferred contracts continued moving higher. December live cattle declined 7½ cents to settle at $218.90 per hundredweight. February futures gained 25 cents to close at $222.95, while April contracts advanced 32½ cents to finish at $225.95. June live cattle climbed $1.15 to settle at $222.20, and August contracts gained $1.30 to close at $217.95. The mixed performance suggests nearby live cattle futures are consolidating following their recent recovery, while deferred contracts continue attracting buying interest.
Lean hog futures also finished mixed Thursday, with losses in several contract months. December lean hogs declined 87½ cents to settle at $55.15 per hundredweight, while February futures gained 47½ cents to close at $61.00. April hogs advanced 35 cents to finish at $66.82, but May contracts slipped 15 cents to $72.92. June futures declined 12½ cents to $81.80, while July contracts lost 27½ cents to settle at $84.62. The mixed results reflect continued uncertainty surrounding seasonal pork supplies, wholesale demand and export opportunities.
Overall, Thursday's livestock trade demonstrated continued strength in feeder cattle and most deferred live cattle contracts, while lean hogs remained uneven. Traders will be watching cash cattle negotiations, wholesale beef and pork values, and feed costs as the markets approach the end of the trading week.