Good Tuesday morning, September 8. I’m Derek Beck with YOUR AG Network. I hope you found a little time for family and friends over the Labor Day weekend.
I spent part of Saturday with a cattle-feeding family that was just finishing its silage harvest. I asked how much corn it takes to keep a feed yard running. The answer: nearly 30 irrigated circles for their operation.
It was a simple reminder that those cattle don’t feed themselves—and producing their feed requires a tremendous investment in land, water, fuel and labor.
Wheat Jumps Overnight
Grain futures began the shortened trading week mostly higher, although wheat did most of the heavy lifting.
December corn gained 2 cents overnight to $5.39 per bushel, while November soybeans were barely higher at $13.10.
December soybean oil gained 68 points to 69.95 cents per pound. December soybean meal moved in the opposite direction, falling $3.80 to $351 per short ton.
Wheat posted the strongest gains:
December Chicago wheat climbed 17 cents to $7.51.
Minneapolis spring wheat gained 17 cents to $7.62.
Kansas City wheat jumped 20 cents to $8.23.
In plain English, traders are putting additional risk back into wheat prices. Fighting around the Black Sea continues to create concern about the movement of grain from Russia and Ukraine, while sharply higher crude oil is adding more uncertainty across the commodity markets.
Cattle and Hogs Finish the Week Higher
The fall run is beginning at livestock auction barns across farm and ranch country.
On the futures board, October live cattle gained $1.22 last week and settled Friday at $212.95 per hundredweight. October feeder cattle climbed $3.63 for the week to $320.15.
Despite those weekly gains, cattle futures ended Friday under pressure. Traders will begin this week weighing softer cash cattle and beef prices against the nation’s historically tight cattle supply.
October lean hogs fell sharply Friday but still finished the week 40 cents higher at $82.30. Pork values improved late Friday, but the market remains cautious about whether consumer demand will hold up following the traditional end of the summer grilling season.
Outside Markets
Stock futures were mixed shortly before 6 a.m. Central Time. Futures tied to the S&P 500 and Dow Jones Industrial Average were lower, while Nasdaq futures were modestly higher at 29,575.
Crude oil climbed above $93 per barrel as renewed Middle East tensions raised concerns about global oil supplies.
Gold was lower at $4,443 per ounce, while silver also traded in the red near $66 per ounce.