Commodity Market Movers
With the exception of cotton and rice, crop markets were lower last week as prices reacted negatively to the USDA Aug. 12 Crop Production and WASDE reports.
After a volatile week, December corn ended 8 c/bu. lower. Early-week gains gave way to a sharp decline at midweek on USDA’s much larger-than-expected crop production estimate at nearly 13.7 billion bushels, 370 million above the average trade estimate and outside the forecast range.
November soybeans were down 47 c/bu. for the week as soybean production came in about 200 million bushels above the average trade forecast. November futures broke below chart support at $9.25 to test the early summer low near $9.
With the setback in soybeans, the soybean products were also lower. December meal fell $18.50/ton to nearly a two-month low. Next key support is the June low at $286. December soybean oil closed below key chart support at 29.79 c/lb, the late-January low, to a new 6½ year low.
December cotton made a new contract low at 61.20 ahead of the USDA’s Crop Production report, then surged on lower than expected U.S. acreage, yield and production. December cotton closed up over 4 c/lb and is closing in on the summer high near 68 cents. The gains turned the short-term trend from lower to higher.
September rice futures rallied to a new high for the year, closing 38 points higher at $11.82/cwt.
October cattle futures had a corrective pullback back last week. Expectations that a seasonal price low is in place remain intact. Upside resistance is near 150 c/lb.
October feeder cattle were 80 points lower, but maintained the sideways near-term price trend. Key chart support is at 204c/lb with resistance at 210 and 214.
Hog futures were under pressure early last week, but rebounded to close higher. Even so, prices remain in a broad trading range from 62 to 67.50 c/lb.
The cash index for the U.S. dollar drifted down 1% for the week as the upper portion of the summer trading range at 98 continues to hold the index in check.
Source: http://www.doane.com/news S