Closing Grain & Livestock Futures Prices.
Sep. corn closed at $3.67 and 3/4, up 4 and 3/4 cents
Aug. soybeans closed at $12.36 and 1/2, up 24 and 1/4 cents
Aug. soybean meal closed at $402.80, up $4.80
Aug. soybean oil closed at 36.52, up 43 points
Sep. wheat closed at $5.34 and 3/4, down 3 and 1/4 cents
Aug. live cattle closed at $159.05, down 5 cents
Aug. lean hogs closed at $123.67, up 5 cents
Sep. crude oil closed at $101.67, down 42 cents
Oct. cotton closed at 65.36, up 20 points
Aug. Class III milk closed at $21.60, up 15 cents
Aug. gold closed at $1,303.30, unchanged
Dow Jones Industrial Average: 16,982.59, up 22.02 points
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Agri Market News & Comments.
Soybeans were higher on fund and commercial buying. Demand continues to be strong, with China buying 420,000 tons of U.S. new crop, along with 66,000 tons of optional origin, and some areas of the Midwest do need rain as we head into August. USDA reports 76% of soybeans are blooming, compared to the five year average of 72%, with 38% at the pod setting stage, compared to 31% on average. 71% of soybeans are in good to excellent shape, down 2% on the week. Soybean meal and oil were higher, following the lead of beans. Safras & Mercado projects 2015 Brazilian soybean production at 94.5 million tons.
Corn was higher on fund and technical buying. Corn’s also watching the weather, and while the trade still expects a big crop, they would also like to see rainfall in parts of the region, which would help with development. USDA’s first survey-based production estimate is out in August. According to USDA, 78% of corn is silking, compared to on average, with 17% at the dough making stage, compared to 16% on average. 75% of corn is in good to excellent condition, down 1% from a week ago. Ethanol futures were higher.
The wheat complex was lower on fund and commercial selling. Chicago and Kansas City are watching the tail end of the winter wheat harvest and spring development conditions look good. For the U.S. winter crop, 83% is harvested, compared to 80% on average, while for spring wheat, 93% has headed, matching the five year average, and 70% is rated good to excellent, unchanged from last week. Nigeria bought 101,000 tons of 2014/15 U.S. wheat (61,000 tons hard red winter and 40,000 tons soft red winter). Globally, the trade’s keeping an eye on dry weather in Australia, along with potential production and trade disruptions in the Black Sea region. Turkey purchased 165,000 tons of milling wheat.
Feedlot country was quiet on Monday afternoon following the distribution of the new showlists. The late July offering appears to be somewhat larger than last week. Although asking prices are not well defined, a few producers have priced cattle around 168.00 to 170.00 in the South and 255.00 to 270.00 in the North. The slaughter totaled 111,000 head, 4,000 below last week, and 7,000 smaller than a year ago.
Boxed beef cutout values were higher on moderate demand and light offerings. Choice beef was up 1.92 at 259.30, and select cuts were 1.84 higher at 256.17.
Chicago Mercantile Exchange live cattle contracts were 1.70 higher to 72 lower. The nearby contracts opened significantly higher but quickly attracted long liquidation and speculative selling. The trade remained volatile through much of the session. Perhaps not surprising given the thin air that typically accompanies record prices according to John Harrington at DTN. Floor talk is blaming nervous ties to wholesale beef demand. Can it be sustained at current levels? August settled .05 lower at 159.05, and October was down .72 at 159.07.
Feeder cattle settled 122 to 200 points higher. Feeder contracts also retreated from early highs, but most contracts held triple digit gains through the close. The tight implications of the midyear herd inventory released on Friday was certainly supportive of the generally bullish case. August was 1.92 higher at 220.17 and September was up 1.95 at 221.20.
Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 4800 head. Compared to last week feeder steers and heifers are selling 2.00 to 6.00 higher. Steer and heifer calves were mostly 5.00 to 10.00 higher compared to the previous week’s light test. Demand is very good for all classes of feeder cattle. The quality was typical of the summer, plain to average. Feeder steer calves weighing 550 to 575 pounds ranged from 246.00 to 262.50. 500 to 550 pound heifer calves brought 240.00 to 247.00.
Lean hogs settled mostly lower. Lean futures appeared to be on the mend through midsession, but selling interest resurfaced tied in part to another round of lower packer bids in the country. Cattle bulls trimming their sails also made it tougher on the lean contracts. August settled .05 higher at 123.67 and October was down .65 at 106.62.
Barrows and gilts in the Iowa/Minnesota direct trade closed 2.99 lower at 122.38 weighted average on a carcass basis, the West was down 2.84 at 122.36, and the East was 1.28 lower at 121.14. Missouri direct base carcass meat price was steady to 4.00 lower from 116.00 to 118.00. Barrows and gilts at Midwest markets on a live basis were steady to 2.00 lower from 88.00 to 95.00.
The pork carcass cutout value was down .85 at 130.94 FOB plant.
The recent combination of sharply higher beef prices and significantly lower pork prices should soon cause retailers and food managers to “wake up” to the superior value and featuring opportunity of pork.
The Monday hog kill was estimated at 397,000 head, 25,000 more than last week and 42,000 greater than last year.