Wednesday's Closing Grain and Livestock Futures
Jul. corn closed at $6.58 and 1/2, up 18 and 1/2 cents
Jul. soybeans closed at $14.94 and 1/4, up 16 cents
Jul. soybean meal closed at $440.60, up $1.90
Jul. soybean oil closed at 49.64, up 16 points
Jul. wheat closed at $6.88 and 1/2, up 8 cents
Jun. live cattle closed at $120.00, down $1.10
Jun. lean hogs closed at $94.55, up $2.15
Jul. crude oil closed at $94.28, down $1.90
Jul. cotton closed at 83.42, down 44 points
Jun. Class III milk closed at $18.10, up 4 cents
Jun. gold closed at $1,367.40, down $10.20
Dow Jones Industrial Average: 15,307.17, down 80.41 points
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Market News and ReCap
Soybeans were higher on commercial and technical buying. The near term supply remains tight, there’s plenty of commercial interest, and China continues to be very interested in beans. That said – farmer selling has increased, allowing new crop to out gain old crop, and the trade expects large domestic and world crops. Soybean meal and oil were higher, following beans. Agriculture and Agri-Food Canada sees 2013/14 soybean production at 4.465 million tons and projects canola at 14.100 million tons. USDA’s weekly export sales report is out Thursday at 8:30 AM Eastern/7:30 AM Central. Soybeans are pegged at 400,000 to 800,000 tons, meal is seen at 100,000 to 225,000 tons, and oil is placed at 0 to 15,000 tons.
Corn was higher on technical and commercial buying. China bought 360,000 tons of corn and unknown destinations picked up 180,000 tons, both U.S. origin for new crop delivery. Also, even if there was a record week to week increase in planting, there are a lot of concerns about the slow emergence. According to Agriculture and Agri-Food Canada, 2013/14 domestic corn production should be up on the year at 13.800 million tons. Weekly U.S. corn export sales are expected to be between 200,000 and 500,000 tons. Ethanol futures were higher.
The wheat complex was mostly higher on speculative and technical buying. There’s some rain in the forecast for the hard red winter crop, but the longer term outlooks show more hot and dry weather on the way. Minneapolis was mostly firm as spring planting remains behind average and emergence is also slower than normal. European wheat was sharply higher on worries about weather in the U.S. and Black Sea region. Tunisia tendered for 67,000 tons of milling wheat and Algeria is in the market for 50,000 tons of milling wheat. Agriculture and Agri-Food Canada projects 2013/14 all wheat production at 29.400 million tons, with the durum crop at 4.900 million tons. Weekly U.S. wheat sales are estimated at 400,000 to 700,000 tons.
DTN reports a light cattle trade was evident in parts of Texas on Wednesday afternoon with live sales 1.00 lower than last week at 124.00. Some selling interest was no doubt stimulated by sharply lower futures and the resurfacing of attractive basis opportunities. Still most showlists continue to be priced on a firm basis of 125.00 plus in the South and 203.00 plus in the North. The kill was estimated at 124,000 head, 1,000 below both a week and a year ago.
Boxed beef cutout values were firm on the choice while weak on the select on light to moderate demand and offerings. Choice boxed beef was up .54 at 211.20, and select was down .78 at 192.19.
Chicago Mercantile Exchange live cattle contracts settled 85 to 115 points lower. The market eroded throughout the session on the sharp losses in the feeder cattle markets, strong corn gains and the inability to push beef prices higher. Demand concerns and a negative looking technical trend weighed on the market. June settled 1.10 lower at 120.00, and August was down 1.15 at 119.22.
Feeder cattle ended the session 27 to 220 points lower. The deferred contracts were the most aggressively pressured as traders focused on the rally in the grain markets. This essentially erases the support seen on Tuesday, and creates questions about building any buyer support back into the market before the Memorial Day holiday. May settled .27 lower at 131.62, and August was down 2.15 at 144.32.
Feeder cattle receipts at the Ozark’s Regional Stockyards at West Plains totaled 2672 head on Tuesday. Feeder cattle were very uneven with steers from 4.00 lower to 2.00 higher. Feeder heifers traded 2.00 higher to 3.00 lower. Demand was uneven, best on the uniform lots of higher quality weaned calves with two rounds of shots. Feeder steers medium and large 1 averaging 572 pounds brought 146.37 per hundredweight. 579 pound heifers traded at 129.97.
Lean hogs settled 27 to 215 points higher as moderate to strong support redeveloped through the lean pit despite the lack of momentum early in the session. Traders concentrated on potential long term demand as supplies may continue to tighten over the summer. June settled 2.15 higher at 94.55, and July was up 1.67 at 93.42.
There was slow market activity with light demand in the cash hogs on Wednesday afternoon. Barrows and gilts in the Iowa/Minnesota direct trade closed 4.93 lower at 87.09 on a carcass basis, the West was down 4.32 at 87.05, and the East was .15 lower at 90.15. Missouri direct base carcass meat price was steady from 85.00 to 87.00. Terminal hogs were steady to 2.00 higher from 59.00 to 64.00.
The pork carcass cutout value FOB plant was up .65 at 94.34 in the afternoon mandatory report on a negotiated basis.
The most recent sow slaughter data would suggest that weekly kill levels are beginning to moderate. Actual slaughter data for the first week of May reported sow slaughter nearly 7% below the same week last year.
Hog slaughter was estimated at 413,000 head, 1,000 more than last week, but down 7,000 from last year.
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