Tuesday's Closing Grain and Livestock Futures
Mar. corn closed at $4.06 and 1/2, down 6 and 1/4 cents
Jan. soybeans closed at $10.37 and 3/4, down 4 cents
Jan. soybean meal closed at $369.50, down $7.90
Jan. soybean oil closed at 32.89, up 10 points
Mar. wheat closed at $6.02, down 13 and 1/2 cents
Dec. live cattle closed at $165.87, down $.62
Feb. lean hogs closed at $81.17, down $.62
Feb. crude oil closed at $54.12, up $.51
Mar. cotton closed at 61.98, down 3 points
Jan. Class III milk closed at $15.95, up $.20
Jan. gold closed at $1200.20 up $18.50
Dow Jones Industrial Average: 17,983.07, down 55.16 points
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Ag Market News Update
Soybeans traded above the Monday close for most of the Tuesday session, but fell just before the close because of spillover weakness from corn and wheat. DTN cites most of the pressure coming from noncommercial selling, however the sell-off was limited by increased commercial buying. South American weather is warmer, but remains mostly good for crop development, which adds to pressure on the market.
Corn was weak the entire session in spite of 6 million bushels of U.S. corn being sold to Mexico. Cold weather in the Central Plains is putting stress on livestock and transportation, boosting demand for feed. That and other demand could take prices steadily higher, but there is also a bearish risk of increased producer-selling in January. There’s little change expected through the Wednesday session unless profit taking results in a lower price, or short covering brings corn to new highs.
Wheat was lower because of the firm dollar limiting exports. Tuesday’s session was dominated early by commercial selling, according to DTN, though the same group started to buy shortly before the close. The lower trend seems likely to continue because of good supplies of wheat globally, but the midweek cold snap in winter wheat growing areas could encourage buying.
Feedlot country was very quiet on Tuesday afternoon with bids and asking prices poorly defined. There were a few bids reported at 162.00 live in Kansas and 260.00 dressed in Nebraska. A few of the showlists have been priced around 166.00 plus in the South and 265.00 plus in the North. The guess is at least moderate business will develop sometime on Wednesday. The kill totaled 116,000 head, even with last week, but 13,000 more than a year ago.
Boxed beef cutout values are higher on choice and steady on select. Choice beef is up 1.53 at 247.20, and select is .23 higher at 236.74.
Live cattle contracts settled 42 higher to 62 points lower with only the front three months down. The early support in the complex eroded following extremely light trade. The fact that this may be the heaviest traded session through the rest of the week created some end of the year position taking. December down .62 at 165.87, and February is down .30 at 164.70.
Feeder cattle settled 60 to 112 points higher. Futures were well contained in a narrow range through much of the session. The focus on strong gains seen Monday held relatively well, although it was hard to draw buyers back into the market in order to continue the rapid surge higher in prices. The lack of support in the live cattle market created some uncertainty in the deferred contacts. January settled .87 higher at 218.32, and March was up .57 at 216.25.
Feeder cattle receipts at the Tri State Livestock Auction at Mc Cook Nebraska on Monday totaled 1100 head. There is no price comparison to last week as there was no sale. The demand was good for everything offered. 132 head of feeder steers medium and large 1 weighing 790 pounds averaged 223.45 per hundredweight. 155 heifers averaging 772 pounds brought 209.18 at Mc Cook.
Lean hogs settled 2 to 122 points lower. Light to moderate pressure was seen in the nearby contracts but earlier in the session was offset by light support through the deferred contract months. There appeared to be a wait and see approach as traders tried to get through the holidays when there will be more activity to develop next week. February settled .62 lower at 81.17 and April was down 1.22 at 83.42.
Barrows and gilts in the Iowa/Minnesota direct trade closed .98 higher at 75.63 weighted average on a carcass basis, the West was up .95 at 75.57, and the East was .84 higher at 74.02. Missouri direct base carcass meat price was steady at 71.00. Midwest hogs on a live basis were lightly tested and steady to 2.00 lower from 48.00 to 51.00.
The pork carcass cutout value was down .15 FOB plant at 86.73. Loins and bellies were higher, but picnics were over 9.00 lower.
Frigid winter temperatures are returning to production country. Cold seasonal conditions over the next several month typically work to limit hog and cattle carcass weights.
Tuesday’s hog kill was estimated at 413,000 head, 13,000 less than last week, but 59,000 more than last year.
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