USDA Shows Grain Surplus
On Friday, the USDA released its quarterly grain stockpile estimates, tallying U.S. inventories of corn, wheat and soybeans.
Nationwide wheat stockpiles on September 1 were higher than expected, surpassing 2.5 billion bushels, almost 20% higher than last year. Meanwhile, corn and soybean stockpiles were only slightly larger than last year, but this fall’s crop is expected to be a bin-buster, breaking production records for both crops. As a result, prices for corn, wheat, and soybeans are all still near multi-year lows.
Meat Markets Butchered
The bloodbath in the cattle and hog markets continued this week, with both markets falling to multi-year lows. Live cattle prices collapsed under $1.00 per pound for the first time since 2010, and lean hogs fell under 50 cents per pound for the first time in almost 7 years.
Prices are tumbling as the supply of meat is outpacing demand, a problem that could linger for a long time. Though the drop has been devastating for livestock producers, meat-lovers will welcome bargains on steaks, burgers and hot dogs.
On Monday, traders will have more news to digest, as the USDA released its quarterly Hogs and Pigs Report Friday after the market closed.