Thursday's Closing Grain and Livestock Futures
Mar. corn closed at $7.24 and 1/2, down 6 and 3/4 cents
Mar. soybeans closed at $14.30 and 1/4, down 6 and 1/4 cents
Mar. soybean meal closed at $414.00, down $5.10
Mar. soybean oil closed at 51.49, up 18 points
Mar. wheat closed at $7.81 and 1/4, down 3 and 3/4 cents
Feb. live cattle closed at $126.60, down $1.92
Feb. lean hogs closed at $85.95, up 80 cents
Feb. crude oil closed at $95.49, up $1.25
Mar. cotton closed at 77.78, up 45 points
Feb. Class III milk closed at $17.50, up 1 cent
Feb. gold closed at $1,690.80, up $7.60
Dow Jones Industrial Average: 13,596.02, up 84.79 points
Click for overnight and additional futures prices http://www.farms.com/markets
Market News and ReCap
Soybeans were lower on profit taking and technical selling, selling the fact after buying the rumor earlier in the week. Unknown destinations bought 240,000 tons of 2013/14 U.S. beans, confirming some of those recent market rumors. Weekly export sales were a new marketing year high at 59.1 million bushels and shipments were about triple what’s needed to meet USDA estimates. Dow Jones Newswires reports the recent export activity is keeping cash soybean basis levels “historically high” for this time of year. Soybean meal was down with oil up on the adjustment of product spreads. The Buenos Aires Grain Exchange states 96% of Argentina’s soybean crop is planted.
Corn was lower on profit taking and technical selling after posting gains for eight consecutive sessions. It looks like farmer selling has increased after the recent gains and there’s not much fresh buying interest at the CBOT. Weekly export sales were within pre-report expectations and it was another slow week for shipments, even with the recent lower USDA estimate. Ethanol futures were lower. The International Grains Council estimates 2012/13 global corn production at 845 million tons but notes ending stocks will remain tight. According to Strategie Grains, the 2013/14 European Union corn crop should total 62.8 million tons. The Buenos Aires Grain Exchange reports 93% of Argentina’s current corn crop is planted.
The wheat complex was lower on profit taking and technical selling. Japan bought more than 63,000 tons of U.S. milling wheat, but that’s a pretty small amount and is considered routine; out of the 118,746 ton total, 55,603 tons were Canadian western red spring, along with 30,024 tons of U.S. dark northern spring, 16,210 tons U.S. hard red winter, and 16,909 tons U.S. western white. Additionally, Iraq bought 200,000 tons of wheat from Australia and 100,000 tons from Canada, and South Korea’s Nonghyup Feed passed on their recent tender for 70,000 tons of feed wheat due to high prices. Weekly export sales were larger than expected but it was a slow week for shipments. European wheat was lower on the lower U.S. trade. The International Grains Council projects 2012/13 world wheat production at 656 million tons with stocks at 174 million and exports at 136.6 million tons. Strategie Grains lowered its 2013/14 European Union soft wheat estimate by 1.9 million tons to 132.3 million tons because of smaller planted area and wet weather during planting. According to the Buenos Aires Grain Exchange, 2012/13 Argentine wheat production totaled 9.8 million tons.