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Soybean Futures Prices Continue to March Higher

Wednesday's Closing Grain and Livestock Futures Prices

May corn closed at $4.97 and 1/2, down 6 and 1/4 cents
May soybeans closed at $15.18 and 3/4, up 17 and 1/2 cents
May soybean meal closed at $491.00, up $3.60
May soybean oil closed at 43.71, up 88 points
May wheat closed at $6.88, down 13 and 3/4 cents
Apr. live cattle closed at $145.75, up 47 cents
Jun. lean hogs closed at $123.77, up $1.25
May crude oil closed at $103.76, up 1 cent
May cotton closed at 91.01, up 112 points
May Class III milk closed at $22.00, up 19 cents
May gold closed at $1,303.20, up $3.20
Dow Jones Industrial Average: 16,424.85, up 162.29 points

For addtitional futures prices and charts click http://www.farms.com/markets

Market News And Review:

Soybeans were higher on commercial and speculative buying. The near term supply remains tight and demand continues to look strong. China’s first quarter GDP growth was a little better than expected, up 7.4% from this time last year. Still, that was the slowest growth rate in the last year and a half and the slowest quarter to quarter growth in two years, according to AgriVisor. Soybean meal and oil were higher, following beans. 85% of Brazil’s bean crop is harvested and with dry weather, Argentina should make a good advance over the next few days. USDA’s weekly export sales report is out Thursday at 8:30 AM Eastern/7:30 AM Central. Old crop beans are placed at -200,000 to 100,000 tons, with new crop at 150,000 to 350,000, old crop bean meal is seen at 120,000 to 250,000 tons, with new crop at 25,000 to 150,000, and old crop bean oil is pegged at 0 to 10,000 tons, with new crop at 0 to 50,000.

Corn was lower on fund and technical selling. There was no real fresh news, so traders took profits while waiting for some new fundamental influence. There are planting delays, but it’s still a little early to get too concerned and longer term outlooks are conducive to planting. In any event, the trade expects a big corn crop again this year and the current supply is ample. Ethanol futures were lower. Weekly old crop U.S. corn sales are estimated at 625,000 to 925,000 tons, with new crop at 40,000 to 150,000.

The wheat complex was lower on profit taking and speculative selling. There’s a chance for rain in the Southern Plains in the longer term forecasts. That being said, the region needs a lot more than a chance to break the drought. The complex is also keeping an eye on political tension in the Black Sea area. DTN reports Jordan bought 150,000 tons of optional origin wheat, “believed to be sourced from the Black Sea”. Old crop U.S. wheat sales are projected at 75,000 to 400,000 tons, with new crop at 175,000 to 450,000 tons.

The cash cattle trade was at a standstill on Wednesday afternoon with just a few bids reported in parts of the North at 240.00. A few cattle sold in Iowa at 150.00 on a live basis. Asking prices remain firm at 149.00 to 150.00 in the South, and 242.00 to 243.00 in the North. Significant trade volume could develop on Thursday if packers and feedlot managers decide to complete business before the long holiday weekend. The kill totaled 115,000 head, 2,000 below last week, and 6,000 smaller than last year.

Boxed beef cutout values were higher on moderate to fairly good demand and moderate offerings. Choice beef gained .89 at 223.75, select 214.47 up 1.33.

Live cattle contracts on the Chicago Mercantile Exchange settled 41 points higher to 10 lower with only 2015 contracts in the red. A narrow price range defined the live cattle complex as traders seemed uninterested in stepping into the market at this point in the week. Traders looked for increased support from outside markets as well as potential beef value support. There was some late short covering in the live pit.  April settled .47 higher at 145.75, and June was up .20 at 135.60.

Feeder cattle ended the session 2 to 40 points higher but were unable to show much life through much of the session. DTN’s Rick Kment says, overall traders seemed to be overlooking the cattle market in favor of hanging out on the sidelines as mere observers. April settled .02 higher at 179.25 and May was up .12 at 179.90.

Feeder cattle receipts at the St. Joseph, Missouri Stockyards on Wednesday totaled 1850 head. Compared to last week, steer and heifer calves weighing less than 550 pounds opened steady. Heavier weight calves started out 5.00 to 10.00 lower. Weights over 700 pounds were not tested early. Feeder steers, medium and large 1weighing 550 to 600 pounds traded from 218.00 to 223.25. 550 to 6 weight heifers brought 175.25 to 184.25.

Lean hogs settled 20 to 167 points higher with only December lower. Higher pork values at midday sparked additional buyer support in all nearby contracts. June futures went from narrow losses to triple digit gains. The focus on higher pork values may only have limited interest, given the short trading week. But for now the fire in the hog market has been rekindled. May settled 1.37 higher at 122.87, and June was up 1.25 at 123.77.

There was slow hog market activity with light demand. Barrows and gilts in the Iowa/Minnesota direct trade closed 2.64 lower at 114.99 weighted average on a carcass basis, the West was down 2.67 at 114.67. Eastern markets were not reported due to confidentiality. Missouri direct base carcass meat price closed steady to 3.00 lower from 111.00 to 113.00. Barrows and gilts in the Midwest closed steady to 2.00 lower from 81.00 to 96.00 live.

Pork values were sharply higher in the morning report but ended the day .57 lower at 121.16 FOB plant. Bellies were responsible for the losses.

Seasonally, market hog numbers typically tighten from spring through midsummer. While the exact level of PED death loss through the winter will impact the pace of tightening, market hog supplies will tighten regardless of PED.

The hog kill was estimated at 412,000 head, 7,000 more than last week, but 9,000 less than last year.

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