Thursday's Closing Grain and Livestock Futures
Sep. corn closed at $5.41, up 2 and 1/2 cents
Aug. soybeans closed at $14.69 and 1/4, down 8 and 1/4 cents
Aug. soybean meal closed at $470.40, up $1.30
Aug. soybean oil closed at 45.52, down 27 points
Sep. wheat closed at $6.60 and 1/2, down 4 and 1/2 cents
Aug. live cattle closed at $122.10, up 80 cents
Aug. lean hogs closed at $96.62, up 82 cents
Aug. crude oil closed at $108.04, up $1.56
Dec. cotton closed at 84.85, up 118 points
Aug. Class III milk closed at $17.89, down 10 cents
Aug. gold closed at $1,284.20, up $6.70
Dow Jones Industrial Average: 15,548.54, up 78.02 points
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Market News and ReCap
Soybeans were lower on technical and speculative selling. Near term crop weather looks generally good, with rain and some cooler temperatures in the forecast for parts of the Midwest. Past that – demand is solid with a strong week for new crop exports and old crop has passed USDA’s target for this year. Soybean meal was mixed with August up on demand and the other months down on the fundamental implications of a big soybean crop. Bean oil was down, following the lead of beans.
Corn was mostly lower with September up on commercial buying and the other months down, watching weather, especially the rain and cooler temperatures expected in parts of the Cornbelt. Weekly export numbers were bullish with China the big buyer for new crop and old crop has topped USDA’s projection for the marketing year. Dow Jones Newswires reports cash basis levels were mixed Thursday, depending on location. Ethanol futures were lower. South Korea’s Corn Processing Industry Association bought 55,000 tons of optional origin food grade corn. Via Dow Jones Newswires, Strategie Grains estimates 2013/14 European Union corn production at 65.9 million tons.
The wheat complex was lower on technical selling, in addition to spillover from corn and beans. Wheat’s continuing to watch winter harvest activity, along with the spring development weather. Weekly export numbers were solid and Japan has begun releasing previously purchased stocks of U.S. western white wheat to domestic millers. European wheat was weak, due at least partially to the increasing availability of Black Sea origin supplies. DTN states Jordan bought 100,000 tons of either Black Sea or European origin wheat and South Korea picked up 35,200 tons of wheat from Australia (24,000 tons noodle grade, 9,700 tons hard, and 1,500 tons premium white). Japan purchased 112,176 tons of wheat outright (36,420 tons Canadian western red spring, 26,785 tons Australian standard white, 25,579 tons U.S. dark northern spring, and 23,392 tons U.S. hard red winter) in addition to 13,050 tons optional origin feed wheat in a sell-buy-sell transaction. Strategie Grains, via Dow Jones Newswires, projects European Union soft wheat production at 133.4 million tons.
Activity in feedlot country remained at a standstill with significant trade apparently postponed until Friday. DTN reports they wouldn’t be surprised if serious business is delayed until after the release of the monthly cattle on feed report at 2:00 p.m. The underscoring of board premiums today may work to fortify higher asking prices of 122.00 in the South, and 196.00 plus in the North. However current bids are around 5.00 below current asking prices. The kill totaled 123,000 head, 1,000 below last week, and 4,000 smaller than last year.
Boxed beef cutout values were steady on light to moderate demand and offerings. Choice beef was down .14 at 189.30, and select was .05 lower at 183.73.
Live cattle contracts on the Chicago Mercantile Exchange settled 70 to 122 points higher. Early trade in the cattle pit was sluggish as traders focused on Wednesday’s losses. But, when no additional selling pressure developed through the morning and nearby contracts could not press below support levels, active buying quickly flooded the market. August settled .80 higher at 122.10, and October was up 1.22 at 126.47.
Feeder cattle ended the session 60 to 110 points higher. Volatility in the feeder cattle futures is how the market is being characterized so far this week. Although trade volume remained light to moderate active price support surged into the complex. This pushed the nearby contracts over a $1.00 higher with the expectation that tighter supplies could help to support live cattle prices. The softness in the grain market once again turned trader’s attention to lower production costs through the near future. August settled 1.10 higher at 142.07, and September was also up 1.10 at 155.05.
Feeder cattle receipts at the Bassett, Nebraska Livestock Auction totaled 3,000 head on Wednesday. There has been no recent test of the market for an accurate price comparison. Demand was very good for all offerings of yearlings and weaned fall calves, with several buyers in the seats. Feeder steers medium and large 1 averaging 682 pounds brought 171.71 per hundredweight. 672 pound heifers traded at an average of 149.71.
Lean hogs Settled 82 points higher to 30 lower. Strong spillover support from the rally in the cattle complex pushed nearby lean hog futures higher. The August contract led the move higher, but the rest of the complex remained defensive with pork values slipping lower and no strength seen the cash hog market. August settled .82 lower at 96.62, and October was down .35 at 85.62.
Barrows and gilts in the Iowa/Minnesota direct trade closed .54 higher at 99.44 on a carcass basis, the West was up .57 at 99.23, and the East was 1.94 lower at 93.18. Missouri direct base carcass meat price closed steady from 90.00 to 92.00. Barrows and gilts at the terminals were steady on a live basis from 62.00 to 70.00.
The pork carcass cutout value FOB plant was down 1.27 at 98.70 on a negotiated basis.
For the week ending July 13, Iowa barrows and gilts averaged 272 pounds, .9 pounds lighter than the previous week, though still 3.5 pounds bigger than 2012.
Thursday’s hog kill at 403,000 head, is 3,000 more than last week and 7,000 greater than last year.
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