* The September jobs report kept the unemployment rate at 5.1%, but it also showed that the economy only created 142K jobs during the month, which was 60K below expectations. Furthermore, sharp downward revisions were made to the July and August numbers and the labor participation rate fell to 62.4% – a 38-year low.
* The dollar fell sharply following the report’s release on ideas that it will be a long time before the Fed raises interest rates now. The energy sector turned lower as well on ideas that a struggling economy will mean reduced demand for fuel. That initially pulled the rest of the commodity sector lower, but then the commodity indices found buying interest on ideas that a breaking dollar would help stimulate demand for the other commodities. That included providing solid underpinning for grain and oilseed prices.
* Informa is said to have told its clients to expect a corn yield of 168.4 bushels per acre, with soybeans at 47.2 bushels. Prices of both actually ticked slightly higher when the data was released, but the market generally yawned when it saw the numbers.
* The strongest correlation in grain and oilseed prices this morning has largely been with movement of money in and out of the broader commodity indices. Those indices that are weighted more heavily toward the energy sector have struggled more, while the others have seen more support.
* Corn futures are fractionally weaker and 4 cents off their lows on some bargain buying on dollar weakness.
* Soybean futures are down 3 cents after trading both sides of unchanged. Prices are largely back into their previous trading range primarily between $8.65 and $8.90 per bushel.
* Wheat prices are 2 to 3 cents lower on similar dynamics.
* Live cattle futures are 15 to 65 cents higher on a technical bounce this morning after falling $20 over the previous 15 days. Boxed beef prices are mixed. This week’s cash trade has largely been $118 to $124 per cwt on a live basis.
* Feeder cattle are $1.65 to $2.30 higher on a technical bounce on firmness in the fats.
* Lean hog futures held key chart support on Thursday’s break, resulting in a bounce of $0.95 to $1.60 currently. Product prices are modestly higher on slow movement. The cash market is mostly steady to 50 cents higher.
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