Wheat markets were mixed as the market gave up recent gains. Russialowered their export price after the U.S. captured some of last week’s Egyptian business.
However, Australia again lowered their wheat production estimates following the second year of drought. That supported the Chicago market as the U.S. is poised to capture the soft wheat markets in southeast Asia, normally supplied by Australia. Corn and soybeans worked lower as harvest progressed rapidly across the Midwest, with active farmer selling pushing cash lower.
The cattle market was weaker, led by feeders. Futures price action has been disappointing, particularly considering that cash improved notably last week. The fed trade was $4/cwt higher with dressed trade about $6/cwt higher.
Domestic demand continues strong, absorbing the record amount of beef production over the last few months. Packers have had to pull cattle ahead to meet contract needs, and feedlots sold all they could on the higher cash prices, keeping them current.
Feeder cattle futures continued to slip after falling below key support levels. Cash auctions have been sluggish as feedlots are full and haven’t been aggressively bidding for replacement calves over the last few weeks.
The stock market rebounded after a pummeling, with solid reportings encouraging bargain hunters to step up. Crude oil continued its slide on concerns of an economic slowdown reducing demand for fuel. The dollar rallied back up to 1 ½ – year highs, adding pressure to the metals and helping the sell-off in energies and grains.
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