Tuesday's Closing Grain and Livestock Futures
Dec. corn closed at $3.83, up 5 and 1/2 cents
Jan. soybeans closed at $10.49 and 1/4, up 5 and 1/2 cents
Dec. soybean meal closed at $411.60, up $10.10
Dec. soybean oil closed at 31.91, up 14 points
Dec. wheat closed at $6.00 and 1/2, down 9 and 1/2 cents
Dec. live cattle closed at $162.40, up 95 cents
Dec. lean hogs closed at $86.95, up 37 cents
Jan. crude oil closed at $63.82, up 77 cents
Mar. cotton closed at 59.88, up 57 points
Dec. Class III milk closed at $17.85, up 5 cents
Dec. gold closed at $1,231.50, up $36.80
Dow Jones Industrial Average: 17,801.20, down 51.28 points
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Market News Report
Soybeans were higher on fund and technical buying. The trade’s watching conditions in South America and waiting for Wednesday’s supply and demand numbers. Analysts do expect U.S. ending stocks to be down on the month. Soybean meal and oil were higher, following the lead of beans.
Corn was higher on fund and technical buying. Corn was in pretty much the same boat as beans, watching South America and waiting for the USDA reports. Analysts expect corn ending stocks to be up from November, holding over 2 billion bushels. Ethanol was mixed.
The wheat complex was lower on fund and technical selling. Wednesday’s USDA numbers should just reflect the continued bearish supply and demand outlook. The trade’s watching weather in the U.S. and around the Black Sea region. There’s the potential for winterkill, but the trade seems to have that on the back burner right now.
Cattle buying interest was limited on Tuesday afternoon with only a few bids reported in Kansas at 162.00 to 164.00 live, and Nebraska at 256.00 dressed, according to private sources. Some showlists are priced around 170.00 in the South and 268.00 plus in the North. Significant trade may not develop until late in the week. The kill was estimated at 113,000 head, 2,000 more than last week, but 8,000 less than last year.
Boxed beef cutout values were lower on the choice and higher on select on light to moderate demand and offerings. Choice beef was down 1.47 at 250.51, and select closed .74 higher at 236.10.
Chicago Mercantile Exchange live cattle contracts settled unchanged to 117 points higher. Gains held in most live futures contracts, but the tone of the market remained subdued as there was still a lot of focus on the early week losses. Tuesday’s gains appeared to be based on short covering rather than any adjustment in the trend of the market, and that could keep markets under pressure over the near term. December settled .95 higher at 162.40, and February was up 1.17 at 163.05.
Feeder cattle ended mostly lower as follow through pressure from Monday’s price tumble affected all but the front month contract. Concern remained in the market over the longer term draw of traders back into the complex unless active sustained support can develop in the live cattle market. January finished the session .90 higher at 232.77, and March was down .87 at 277.35.
Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 7,000 head. Compared to last week, feeder steers and heifers traded mostly steady to 2.00 lower. Steer calves were mostly 3.00 to 6.00 higher. Heifer calves traded 1.00 to 2.00 lower. Feeder cattle trends followed the board as feeder and live cattle futures saw limit losses. Feeder steers medium and large 1 averaging 615 pounds brought 274.32 per hundredweight. 621 pound heifers averaged 241.54.
Lean hogs settled 37 higher to 52 lower. Front month December contracts were able to hold onto narrow gains in very light trade activity. Many contract months remained under pressure but off the day’s lows. Activity levels seemed to be comfortable with the shifts in the cattle complex having very little impact in overall market direction. December was up .37 at 86.95, and February was down .52 at 84.60.
There was slow hog market activity with light demand on Tuesday afternoon. Barrows and gilts in the Iowa/Minnesota direct trade closed at 84.87 with no price comparison. The West was up.85 at 84.91 weighted average on a carcass basis, and the East was not reported due to confidentiality. Missouri direct base carcass meat price was steady to 1.00 lower from 77.00 to 78.00. Midwest hogs on a live basis were steady from 57.00 to 66.00.
The pork carcass cutout value is .64 higher at 93.45 FOB plant, with picnic and rib primals responsible for the gains.
With the December 1 hog and pig report only two weeks away, pork producers could easily become more aggressive sellers as they hedge against any supply surprises, and or sense that 2015 profit opportunities may be slipping away.
Tuesday hog slaughter was estimated at 429,000 head, 1,000 below last week and down 8,000 from last year.
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