Jack Scoville of the Price Futures Group in Chicago explained that wheat’s stability was derived from steady prices overseas as well as tepid export demand.

“Our export demand has just kind of been bumping along. There’s no reason to buy based off of increased demand. Even though the potential is there, it has yet to materialize,” he said. “That keeps the market from going up. On the other hand, Russian prices have been pretty stable and that keeps the market from going down.”

Export demand for corn is improving, mainly due to low prices, Scoville added, but the incoming U.S. crop will put more pressure on prices.

“We’ve got a very big crop coming here. That’s keeping the market from going up. Plus a lot of farmers of both corn and soybeans are sweeping up the bins and getting ready to take in the new crop, and that creates selling on any rally attempts,” he said.

Scoville added that increased demand for U.S. soybeans from China and elsewhere is supporting prices, as well as the fact there are fewer old crop soybeans available than old crop corn.

Reports from the ProFarmer Crop Tour, which takes place from Aug. 19 to 22, showed good yields for both corn and soybeans from Nebraska, Indiana, South Dakota and Ohio. However, Scoville noted the average yields were slightly lower than those projected by the U.S. Department of Agriculture on Aug. 12.

“That might create some stability in prices,” he said.

As for the potential work stoppage for both the Canadian National Railway and Canadian Pacific Kansas City, which could start on Aug. 22, Scoville said while the trade is aware of the effect of a major rail shutdown, it is mostly focused on matters within the U.S.

“If there is a strike, I assume it will create an uptick in our wheat demand here. I think it’s potentially bullish, but even though we know it’s around, we’re kind of concerned about other things,” he said.

Scoville believes grain futures at the CBOT may have already hit seasonal lows and may see some support in the short term.

“We can see corn go towards US$4 (per bushel), maybe a little bit over. We can see (soybean) prices move up towards the US$10.30/bu. area,” he predicted.

The post CBOT Weekly: Prices stable with potential gains upcoming appeared first on Alberta Farmer Express.

Cattle futures also were boosted by a sharp drop in grain futures due to technical selling, and well-timed rains in Argentina’s farm belt, according to livestock analysts.

CME lean hog futures closed lower.

CME February live cattle settled up 0.85 cent at 157.475 cents/lb., and most-active April ended up 0.625 cent at 160.55 cents/lb. (all figures US$).

CME March feeder cattle futures rose 2.3 cents to settle at 183.275 cents/lb.

Traders said they expect the cash cattle market prices to be steady to slightly higher this week, but the U.S. Department of Agriculture noted on Monday that Oklahoma City feeder steers, heifers and calves were steady to lower at auction.

On Monday, cattle slaughter rates were slightly down, as were wholesale beef values. Choice cuts priced by USDA on Monday morning were at $271.11/cwt, down 61 cents from the previous day, and select cuts were down 57 cents at $255.86/cwt.

Still, “packer margins are showing that packers are making more than $80 a head, so they have money in their pocket,” said Don Roose, president of Iowa-based U.S. Commodities. “Now, as the economy continues to go forward and given the past patterns of cyclical bull markets, how high are the new highs for cattle?”

February lean hog futures ended down 0.25 cent at 77.575 cents/lb. Most-active April hogs eased 0.275 cent to 85.45 cents/lb.

— P.J. Huffstutter reports on agriculture and ag commodities for Reuters from Chicago.

The post U.S. livestock: CME cattle firm on bargain buying, grain values appeared first on Alberta Farmer Express.