By: NATHAN STUEDLE
GRAIN MARKET SUMMARY
Grain markets finished sharply mixed Friday after USDA’s October WASDE report delivered a major bearish surprise for corn and additional pressure for wheat.
Corn futures were hammered following the report, closing roughly 18 to 20 cents lower. USDA raised the national corn yield to 181.2 bushels per acre, up 2.7 bushels from September, and increased projected production to just over 16 billion bushels. That pushed projected 2026-27 ending stocks to 1.849 billion bushels, well above last month’s estimate. DTN characterized the U.S. corn numbers as bearish, and the market reaction reflected that assessment almost immediately.
Soybeans were the outlier. November soybeans were under pressure earlier in the session and traded as much as 10 to 15 cents lower, but reversed after the report and finished roughly 4 to 4½ cents higher. USDA raised the soybean yield only slightly, while the domestic ending-stocks adjustment was comparatively small, leaving the soybean balance sheet much less bearish than corn.
Wheat futures also finished sharply lower, with losses ranging from roughly 8 to 17 cents. USDA increased projected U.S. wheat ending stocks and reduced its export forecast, adding pressure to a market already dealing with relatively sluggish export commitments.
Friday’s clear story was corn. Traders entered the report expecting USDA to potentially lower yield, but instead received a substantially larger crop estimate. That surprise triggered aggressive selling and produced one of the most volatile grain sessions of the week.
LIVESTOCK MARKET SUMMARY
Cattle futures finished sharply higher Friday, with feeder cattle again leading the move.
Live cattle closed roughly $2 to $3.65 higher, while feeder cattle surged approximately $6 to $8. The rally came after two sessions of consolidation and renewed optimism surrounding cash cattle values and tight supplies.
Cash trade had been slow to develop earlier in the week, although some light northern business was reported around $345 dressed on Thursday. Friday morning boxed beef values were mixed, with Choice near $374.70 and Select sharply higher near $356.02.
Feeder cattle received an additional boost from the collapse in corn prices following the USDA report. A nearly 20-cent drop in corn significantly changes the feed-cost equation for cattle feeders and helped accelerate buying in feeder futures.
Live cattle also benefited from continued expectations for historically tight cattle supplies and the possibility that cash prices could remain firm.
Lean hogs remained the weaker part of the livestock complex. Hog futures entered Friday already under pressure, with December hogs down 65 to 83 cents during the morning session. The market continues to balance a relatively tight hog supply picture against softer export expectations and concerns surrounding pork demand.
Overall, Friday was a strong session for cattle and a much different story for hogs. The combination of tight cattle supplies and sharply cheaper corn helped fuel another major rally in feeder cattle, while live cattle also posted strong gains heading into the weekend.