Commodity Blog

Soybean processing in U.S. declined 7.4 percent last month from a year earlier with lower demand for animal feed and vegetable oil and inventories, shrinking from July levels. U.S. feed consumption slowed as beef, pork and dairy producers reduced herds to decrease losses. Farmers are selling dairy cows for slaughter after the government forecast that milk prices will fall 34 percent in 2009. November futures for soybean declined $0.235 (2.5 percent) to $9.03 per bushel on September 11th on CBoT.

Hog futures slid to the two-weeks lowest and cattle dropped on speculation that China, the second-biggest buyer of U.S. chicken meat and pork last year, will halt imports of U.S. poultry. In this case more meat will be left on the U.S. market to compete with pork and beef. China said yesterday it will begin probes of alleged dumping and subsidies for U.S. chicken and auto products; today China filed a complaint to the World Trade Organization about U.S. President’s decision to impose a 35 percent tariff on Chinese tires. December futures for hogs slid $0.01075 (2.2 percent) to $0.4875 per pound by 11:36 on the Chicago Mercantile Exchange. December futures for cattle dropped $0.00325 (0.4 percent) to $0.866 per pound.

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