Monday's Closing Grain & Livestock Futures Prices
Dec. corn closed at $3.77 and 1/2, down 4 cents
Jan. soybeans closed at $10.43 and 3/4, up 7 and 3/4 cents
Dec. soybean meal closed at $401.50, up $7.30
Dec. soybean oil closed at 31.77, down 24 points
Dec. wheat closed at $6.10, up 1 cent
Dec. live cattle closed at $161.45, down $3.00
Dec. lean hogs closed at $86.57, down 2 cents
Jan. crude oil closed at $63.05, down $2.79
Dec. cotton closed at 60.21, down 33 points
Dec. Class III milk closed at $17.80, unchanged
Dec. gold closed at $1,194.70, up $4.60
Dow Jones Industrial Average: 17,852.48, down 106.31 points
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Ag Market News And ReCap:
Soybeans were higher on fund and technical buying, posting a solid finish after some up and down activity. Demand is strong with Spain buying 130,000 tons of U.S. beans for delivery this marketing year and weekly export inspections were bullish. Past that – the trade’s watching South America and getting ready for Wednesday’s USDA report, which could be bullish for soybeans. Soybean meal was up and bean oil was down on the adjustment of product spreads. Meal also saw some influence from beans and oil had spillover pressure from crude oil’s continued freefall. AgRural reports Brazil’s soybean planting is just about over with 26% of the crop sold, compared to 39% on average.
Corn was lower on fund and technical selling. Contracts started higher, but couldn’t following through. Corn’s also watching South America and getting ready for the supply and demand numbers out at midweek, which could be bearish on corn. Past that – the trade’s also got an eye towards the USDA’s final production totals in January. Japan bought 136,000 tons of 2014/15 U.S. corn. Ethanol was mixed. China’s statistics bureau reports 2014 corn production was 215.67 million tons, down from 2013, with wire services adding a lack of storage is leading to quality problems.
The wheat complex was mixed with Chicago and Kansas City firm on technical buying and some lower trade in the dollar, which pulled back after an early move to new multi-year highs. Minneapolis was lower in pretty light trade. Wednesday’s USDA numbers should just reflect the bearish supply fundamentals for the wheat complex, especially on the global side of the ledger. Still, the trade’s keeping an eye on the potential for winterkill in the U.S. and around the Black Sea region. Russia’s grain export regulators are considering new regulations on grain exports, potentially restricting sales if quality becomes an issue. China’s statistics bureau says wheat production this year was 126 million tons, up from last year.
Cattle country was dead quiet on Monday afternoon following the bearish action on the Chicago Mercantile Exchange. Aggressive long liquidation and technical selling caused virtually all contracts to close limit lower. Needless to say, this represents a major blow to market psychology. For the moment, feedlot managers are at a loss as to where ready steers and heifers should be priced. New showlists appear to be generally larger than last week with only Texas showing about the same number of cattle. The kill totaled 111,000 head, even with last week, but 7,000 smaller than a year ago.
Boxed beef cutout values were weak on very light demand and light offerings. Choice beef was down .56 at 251.98, and select was 1.33 lower at 235.36.
Chicago Mercantile Exchange live cattle contracts settled 200 to 300 points lower. The limit losses in the feeder cattle complex as well as the lack of support in the beef values in the morning report created both fundamental and technical pressure through the early week trade. December settled 3.00 lower at 161.45, and February was also limit lower at 161.87.
Feeder cattle closed limit down across the board. The limit down moves serve as a reminder of just how fast the market can change. Week ago price moves posted limit gains. But limit lower losses reminded traders that additional pressure may continue to develop if short and long term beef demand cannot be quickly rebuilt. January settled at 231.87, and March at 228.22 both down the 3.00 limit.
Feeder cattle receipts at the Joplin Regional Stockyards on Monday totaled 5500 head. Compared to last Monday, steers under 600 pounds were steady to 5.00 higher, heifers weighing less than 600 pounds were steady. Feeders over 600 pounds were 1.00 to 4.00 lower. The demand was good and the supply was moderate. Feeder steers medium and large 1 weighing 500 to 600 pounds traded from 271.00 to 308.00. 5 to 6 weight heifers brought 230.00 to 245.00.
Lean hogs settled unchanged to 60 points in the red. The complex was under pressure as traders followed the trend in the cattle futures. Although the lean hog complex has the strongest support, it has been hard to rally the troops and lobby for firming prices given expectations of strong supply building over the next six months according to DTN analysts. December settled .02 lower at 86.67 and February was down .50 at 85.12.
Barrows and gilts in the Iowa/Minnesota direct trade were not reported due to confidentiality in the afternoon report. The West was down 1.28 at 84.95, and the East was down .40 with a weighted average of 83.40 on a carcass basis. The Missouri direct base carcass meat price was steady to 1.00 lower at 78.00. Midwest hogs were fully steady from 57.00 to 66.00 on a live basis.
The pork carcass cutout value was up .12 at 92.81 FOB plant.
The sparerib market appears to be losing momentum, but few expect late-year demand to collapse. Buying activity in the fresh pork market was lackluster this past week, but some sources in the meat trade remain confident that prices should begin to firm up this week thanks to late holiday featuring needs.
Hog slaughter was estimated at 430,000 head, 1,000 less than last week, and down 2,000 from last year.
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