Friday's Closing Grain & Livestock Futures Prices.
Mar. corn closed at $3.85 and 1/4, down 4 and 1/2 cents
Mar. soybeans closed at $9.99 and 1/4, down 8 cents
Mar. soybean meal closed at $347.50, unchanged
Mar. soybean oil closed at 31.48, down 35 points
Mar. wheat closed at $5.10 and 1/4, down 17 and 1/2 cents
Feb. live cattle closed at $156.70, down $2.22
Apr. lean hogs closed at $67.40, up 35 cents
Mar. crude oil closed at $50.34, down 82 cents
Mar. cotton closed at 64.67, up 23 points
Mar. rice closed at $10.79, down 1 cent
Mar. Class III milk closed at $15.53, down 28 cents
Feb. gold closed at $1,204.40, down $2.70
Dow Jones Industrial Average: 18,140.44, up 154.67 points
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Ag Market News and ReCap
Soybeans were lower on fund and technical selling. It’s a very long way off, but USDA is projecting a significant increase in ending stocks for next marketing year. The new marketing year starts September 1. The bullish weekly export sales and shipments were largely ignored. Soybean meal was mostly lower and bean oil was down.
Corn was lower on fund and technical selling. USDA’s estimating a year to year decline in U.S. corn ending stocks, but again, that’s a very long way off. Weekly export sales were good, while it was another slow week for physical shipments. The U.S. ethanol crush is 7% ahead of a year ago, but processor margins are negative over the past six weeks. Ethanol futures were mixed.
The wheat complex was lower on fund and commercial selling, along with the higher dollar. USDA’s expecting bigger ending stocks next marketing year for wheat as well. Also, it was another bearish week for the export sales and shipments. Thursday, Egypt passed on U.S. wheat citing high prices, even with an export grant from the U.S., and Friday, bought 240,000 tons from France and Romania. Algeria bought 400,000 tons of milling wheat from France.
A light to moderate cattle trade was evident in parts of the North on Friday afternoon, with live sales from 158.00 to 160.00 and dressed from 253.00 to 256.00. Both live and dressed sales definitely have a weak undertone compared to last week. Although buyers in the North may have to pick up additional sales, it looks like the South completed trading. The weekly kill was estimated by USDA at 524,000 head, 13,000 smaller than both last week and a year ago.
Boxed beef cutout values were firm to higher on moderate demand and light to moderate offerings. Choice beef was up .39 at 240.31 and select was 1.08 higher at 237.79.
Chicago Mercantile Exchange live cattle contracts settled 120 to 297 points lower. There was a late week selloff, leaving cattle futures sharply lower in the nearby contracts while the deferred issues suffered moderate losses. February settled sharply lower, sparking additional uncertainty about the ability to keep prices at the current trading range thorough the end of the month. February was down 2.22 at 156.70 and April was down 2.97 at 148.52.
Feeder cattle ended the session 215 to 337 lower. The early mixed trade gave way to triple digit losses through the entire complex. The concern that cattle on feed numbers may not come in along projected levels factored into the late week pressure in the feeder cattle trade. March settled 3.37 lower at 199.17, and April was down 3.22 at 198.35.
Lean hogs settled 57 higher to 87 lower. The lean futures posted triple gains early in the session, but the support quickly eroded with only the nearby contracts ending with moderate gains. The lack of support in the cattle complex and uncertainty about sustained cash support worked to push deferred futures lower. April settled .35 higher at 67.40, and May was up .57 at 77.30.
Feeder cattle receipts at Missouri auctions this week totaled 15,702 head. Compared to last week, feeder steers and heifers sold mostly steady. Supplies were light and nearly half of the reported auctions around the state remained dark due to the winter storm that brought sleet, freezing rain, and snow to the majority of the state. Feeder steers, medium and large 1 averaging 721 pounds traded at 221.24 per hundredweight. 765 pound replacement heifers traded at 210.69.
Barrows and gilts Iowa/Minnesota direct trade closed .37 higher at 59.57 weighted average on a carcass basis, the West was down .10 at 59.04, and the East was not reported due to confidentiality. Missouri direct base carcass meat price was steady from 52.00 to 53.00. Midwest hogs on a live basis closed steady from 34.00 to 42.00 in a light test.
The pork carcass cutout value was down .82 at 71.50 FOB plant. Bellies were over $4.00 lower, but hams and ribs were higher.
Given Thursday’s surge in country hog sales, virtually the biggest seen since late last year, the cash market may be finally waking up from its long winter nightmare. Are buyers beginning to see tightening numbers, better pork demand or both?
The weekly hog slaughter is estimated at 2,285,000 head, 63,000 more than last week, and 174,000 more than last year.