Commodities & Metals

U.S. Meat Prices Pull Back in September

Source: Thinkstock
The U.S. Department of Agriculture (USDA) released its preliminary report on September farm prices Monday afternoon. The all-products price index fell 2.8% month-over-month to 106, with the crop index down 3.3% and the livestock index unchanged. The September all-products index is up 3 points year-over-year. The index uses prices from 2011 as its base value (100).

The USDA noted that September’s higher prices for broilers, milk, strawberries, and apples offset lower prices for corn, hogs, soybeans, and cattle. Prices paid by farmers in the month fell were flat with August at 111 and 4 index points higher compared with September 2013.

The price farmers received for livestock is 21% higher than it was a year ago and the price for meat animals is 23% higher. The September hog price is down $9.80 per hundredweight since August, but up $2.70 compared with September 2013. Beef prices are up $34 per hundredweight compared with the September 2013 price and down $2 compared with last month.

Both corn and wheat prices remain significantly lower than they were a year ago, with year-over-year all wheat prices down $1.08 a bushel at $5.72 and feed corn down $2.02 at $3.38 a bushel.

Dairy prices are up 3.3% month-over-month and up 24% year-over-year.

The prices farmers paid for feeder pigs dropped from $199 per hundredweight in September to $168. Feeder cattle prices rose $7 per hundredweight to $234 in September.

Here is how some agriculture-related ETFs are trading today:

The Market Vectors Agribusiness ETF (NYSEMKT: MOO) is down about 0.3% at $52.85 in a 52-week range of $49.67 to $55.55.

The PowerShares DB Agriculture fund (NYSEMKT: DBA) trades up 1.5% at $25.68 in a 52-week range of $24.04 to $29.41. Volume is more than double the daily average of around 520,000 shares.

The Teucrium Corn Fund (NYSEMKT: CORN) is up 0.7% today at $23.15 in a 52-week range of $22.94 to $35.79.

The Teucrium Wheat Fund (NYSEMKT: WEAT) trades up about 1.2% on Monday at $10.91 in a 52-week range is $10.64 to $17.69.