Tuesday's Closing Grain and Livestock Futures
Jul. corn closed at $6.66 and 1/2, up 9 and 1/4 cents
Jul. soybeans closed at $15.09 and 1/4, up 33 cents
Jul. soybean meal closed at $442.30, up $14.10
Jul. soybean oil closed at 49.54, up 30 points
Jul. wheat closed at $6.93 and 3/4, down 3 and 3/4 cents
Jun. live cattle closed at $120.75, up 17 cents
Jun. lean hogs closed at $94.70, down 17 cents
Jul. crude oil closed at $95.01, up 86 cents
Jul. cotton closed at 81.42, down 7 points
Jun. Class III milk closed at $17.88, down 3 cents
Jun. gold closed at $1,378.90, down $7.70
Dow Jones Industrial Average: 15,409.39, up 106.29 points
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Market News and ReCap
Soybeans were higher on speculative and commercial buying. The old crop supply remains extremely tight and China bought another 120,000 tons of new crop U.S. beans. USDA reports that as of Sunday, 44% of soybeans are planted, compared to 87% a year ago and the five year average of 61%, with 14% emerged, compared to 57% last year and 30% on average. There’s still some market chatter about needing to import soybeans from South America, but nothing firm yet, and there are still shipping delays out of major South American ports. Soybean meal and oil were higher with meal outgaining oil on a comparatively stronger product demand outlook.
Corn was higher on commercial and speculative buying. The near term supply of corn is very tight and there are continued concerns about corn losing acreage due to planting delays with USDA’s next official estimate due out June 28. According to USDA, 86% of corn is planted, compared to 99% a year ago and 90% on average, and 54% has emerged, compared to 89% last year and 67% on average. Ethanol futures were higher.
The wheat complex was mixed in consolidation trade. That said – hard red winter is in very poor condition and spring wheat planting remains slower than average. For winter wheat, 60% has headed, compared to 85% a year ago and 72% on average, with 31% rated good to excellent, unchanged on the week, and for spring wheat, 79% planted, compared to 100% last year and 86% on average, with 42% emerged, compared to 94% last year and 66% on average. European wheat was higher. Lebanon is tendering for 25,000 tons of milling wheat.
It was a nearly typical Tuesday in cattle country very quiet, the difference was showlists were distributed a day late due to the holiday. The numbers of ready cattle appear to be generally larger, especially in Texas and Nebraska, with only Colorado showing fewer offerings. Preliminary asking prices are starting out around 126.00 to 127.00 in the South and 203.00 to 205.00 in the North. Packers appear to be close to the knife so we could see trade earlier in the week. The kill totaled 125,000 head, 1,000 more than last week, but 5,000 below a year ago.
Boxed beef cutout values were weak on light to moderate demand and offerings. Choice beef was down .33 at 208.54, and select is .51 lower at 189.93.
Chicago Mercantile Exchange live cattle contracts settled 17 to 97 points higher. Light gains held throughout the complex following the firmness in the outside markets. Traders also focused on the potential of increased short term summer demand helping to firm the buyer activity in both the wholesale and futures markets. June settled .17 higher at 120.75, and August was up .20 at 119.42.
Feeder cattle ended the session 35 to 92 points higher on the gains in the live pit. Feeder contracts were pressured earlier in the session by the strong gains in the grain markets. The nearby contracts outperformed the deferred months. August was up .92 at 145.47, and September was .87 higher at 147.55.
Ft. Pierre Livestock Auction at Ft. Pierre, South Dakota had receipts of 3489 head last week. Compared to two weeks ago steers trended steady to $2.00 higher. Heifers were steady to 2.00 higher with instances of 3.00 to 4.00 higher with some heavier weights 2.00 lower. Good demand for several long strings and packages of feeders and replacement heifers on an active market. 423 head of feeder steers averaging 827 pounds traded at 138.57 per hundredweight. 183 heifers weighing 715 brought 133.59.
Lean hogs settled 27 higher to 37 lower on the lack of support in the cash and pork values. Most of the early gains were replaced by light to moderate losses. June settled .17 lower at 94.70 and July was up .05 at 93.35.
There was slow market activity with light demand in the direct hog trade on Tuesday. Iowa/Minnesota direct trade closed 2.01 higher at 92.02 on a carcass basis, the West was also up 2.01 at 91.56, and the East was down .20 at 90.23. Missouri direct base carcass meat price closed 2.00 lower at 87.00. Terminal hogs on a live basis were fully steady from 59.00 to 64.00.
The pork carcass cutout value was down .55 at 93.87 FOB plant in the afternoon report.
The seasonal supply of market ready hogs should continue to tighten for another 30-60 days, forcing packers to support the cash market regardless whether processing margins are good or poor.
Tuesday’s hog kill was estimated at 424,000 head, 13,000 more than last week, and 2,000 greater than last year.
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