Friday's Closing Grain and Livestock Futures Prices.
May corn closed at $4.98 and 1/2, down 2 and 3/4 cents
May soybeans closed at $14.63, down 19 and 1/4 cents
May soybean meal closed at $472.90, down $6.60
May soybean oil closed at 42.10, down 40 points
May wheat closed at $6.60 and 1/4, down 2 cents
Apr. live cattle closed at $144.85, up 85 cents
Apr. lean hogs closed at $124.92, down 25 cents
May crude oil closed at $103.74, up 34 cents
May cotton closed at 89.02, unchanged
Apr. Class III milk closed at $24.02, up 6 cents
May gold closed at $1,318.60, down $1.50
Dow Jones Industrial Average: 16,026.75, down 143.47 points.
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Market News And Review
Soybeans were lower on fund and commercial selling. South America’s harvest is generally ahead of schedule and there’s talk of more U.S. imports. Unknown did buy 330,000 tons of new crop U.S. beans, but the trade is very concerned about more Chinese cancellations or credit problems. Soybean meal and oil were lower on spillover from beans.
Corn was lower on fund and technical selling. A lot of the Midwest is expected to receive rain over the next couple of days ahead of a cool down next week. Monday’s USDA crop report should show some planting progress with the five year average for this time of year at 7%. Domestic demand is strong and exports have been solid lately, but there’s a lot of uncertainty about Chinese demand. Ethanol was mostly lower.
The wheat complex was mostly lower, with the winter wheat pits hitting one month lows. Chicago and Kansas City were down, both looking at the potential for rain, but it’s expected to miss the driest areas of the Plains. There was no real fresh news, so contracts basically took the path of least resistance. Ukraine’s Ag Ministry reports spring planting is 91% complete. Algeria bought 450,000 tons of optional origin wheat.
There was still not any reported activity in the cash cattle trade by mid-afternoon on Friday. Packers remain both short bought and extremely cautious regarding short term beef demand. In other words they need to buy cattle but processing margins have turned quite ugly. Asking prices remained around 150.00 in the South and 243.00 plus in the North. The weekly kill totaled 573,000 head, 10,000 less than last week and 34,000 under 2013.
Boxed beef cutout values were lower on light to moderate offerings. Choice beef was down 2.88 at 222.12 and select was 1.84 lower at 212.46.
Live cattle contracts on the Chicago Mercantile Exchange settled 85 points higher to 22 lower. Moderate gains held in the nearby futures. It appeared that the well has run dry when looking for additional trade interest to step back into the complex. Traders continued to watch for development in the cash cattle trade and lower boxed beef values weighed on futures. April settled .85 higher at 144.85, and June was up .57 at 135.77.
Feeder cattle contracts ended the day 30 to 122 points higher. The lack of support in the boxed beef values and uncertainty on how aggressive packers will be in the cattle trade limited some late week buyer support. Support came from lower corn futures values. April settled 1.22 higher at 179.50 May was up .40 at 180.07.
Feeder cattle receipts at Missouri Auctions this week totaled 27,986 head. Compared to last week, steer calves sold steady to 2.00 lower and heifer calves steady to 2.00 higher. A light test of true yearlings sold mostly steady, Calf markets around the state are very uneven with local auctions having instances ranging from 15.00 lower to 10.00 higher. The offering was considered moderate, but numbers were much less than the previous week. Feeder steers, medium and large 1 averaging 524 pounds brought 223.15 per hundredweight. 520 pound heifers traded at 199.72.
Lean hogs settled mixed from 80 higher to 25 lower with buyer support evident in the deferred contracts. The soon to be expired April contract held on to narrow losses, but late week attempts to get out of the market was the main order of business. April was down .25 124.92, and June was .07 higher at 121.22.
Barrows and gilts in the Iowa/Minnesota direct trade closed 1.89 lower at 118.37 weighted average on a carcass basis, the West was down 1.82 at 118.34, and the East was 1.37 lower at 119.17. Missouri direct base carcass meat price closed steady from 116.00 to 117.00, Barrows in the Midwest were steady to 1.00 lower live basis in a light test from 83.00 to 98.00.
The pork carcass cutout value was up .29 at 124.76 FOB plant.
While early spring hog numbers seem fully adequate, severe shortages linked to PEDv death losses could still be waiting in the wings, especially given ideas that the disease took its worse toll during the winter quarter. Starting in late May or early June, slaughter totals could fall sharply as the December-March pig crop reaches full maturity,
The weekly hog kill was estimated at 2,020,000 head, 10,000 less than last week and down 58,000 from last year.
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