Corn futures maintained strength Thursday given lingering crop yield concerns and strong demand. Weekly export sales were reduced for old crop sales by 1.1 million bushels, but new crop sales were a massive 66.4 million bushels. The USDA said separately that Egypt bought 4.72 million bushels of U.S. corn. Demand for U.S. feed grains is expected to remain solid, especially with the reduction in crop size for Russia and the Ukraine.
Wheat futures were higher although well off session highs after Russia announced it is extending its grain export ban. Russia said the ban will now remain in effect until next year's harvest. Demand for U.S. wheat has improved as a result of Russia's drought situation. The Rome-based UN Food and Agriculture Organization adjusted Russian wheat output to 43 million metric tonnes from 48 million metric tonnes in the August report.
Soybean futures were modestly higher on late-day positioning, while reports of disease issues in Illinois and Iowa kept prices afloat. Traders were reluctant to take on large positions given tomorrow's U.S. unemployment report, the upcoming holiday weekend and next week's crop production reports. Gains were limited by favorable rains in the Midwest and seasonal pressure ahead of harvest. This morning private exporters announced a sale 3.67 million bushels of soybeans to Egypt for 2010/11.
Lean hog futures advanced on fund buying and shorts covering previously held positions. Funds were buyers of October while exiting the December contract. Bullish traders were emboldened by October's price discount to CME's hog index. Cash hogs were reported weaker in the country with IA/MN $1.02 lower with a weighted average of $77.00. Packers have most of their needs met and most plants will be closed Monday for Labor Day.
Live cattle futures closed positive on fund buying and spread maneuvering. Cash cattle were lower this week versus last week with cash sales reported mostly at $66-$97 per hundredweight in the live. Last week fetched $99 to $99.50 sales. Boxed beef prices were better with choice $33 higher and select $.55 higher. Feeder cattle ended higher with the help of short covering and spillover support from live cattle.