Friday Closing Grain and Livestock Futures
Mar. corn closed at $3.85 and 3/4, up 1/2 cent
Mar. soybeans closed at $9.73 and 1/2, down 7 and 3/4 cents
Mar. soybean meal closed at $329.40, down $2.00
Mar. soybean oil closed at 31.82, up 11 points
Mar. wheat closed at $5.27, up 1 and 1/4 cents
Feb. live cattle closed at $156.07, up $2.65
Feb. lean hogs closed at $63.87, up 60 cents
Mar. crude oil closed at $51.69, up $1.21
Mar. cotton closed at 61.59, down 20 points
Mar. rice closed at $10.74, up 29 cents
Feb. Class III milk closed at $15.88, up 11 cents
Feb. gold closed at $1,233.90, down $28.10
Dow Jones Industrial Average: 17,824.29, down 60.59 points
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Market News and ReCap
Soybeans were lower on fund and technical selling. The trade took profits after Thursday’s gains, while watching weather in South America. Rainfall has been a little light recently, but growth and development conditions, overall, look favorable. Soybean meal was lower and bean oil was higher on the adjustment of product spreads. The Buenos Aires Grain Exchange projects Argentina’s soybean crop at 57 million tons.
Corn was modestly higher on technical buying. Contracts were down much of the day, but bounced back near the close. Demand looks solid, farmer selling remains light, and the trade’s getting ready for next week’s USDA numbers. On average, the trade expects U.S. ending stocks to be up slightly on the year. Ethanol futures were lower.
The wheat complex was mixed, with Chicago up, Kansas City mixed, and Minneapolis lower. Wheat remains fundamentally bearish with a large world supply and slow demand for U.S. wheat. The impact of potential increase in demand, from either the fighting in the Black Sea region or the U.S. grant to Egypt, is still up for debate at this point. Turkey bought 60,000 tons of optional origin durum and feed mills in the Philippines picked up 93,000 tons of optional origin feed wheat.
A light cattle trade was evident in several areas on Friday afternoon. Live business in the South was 2.00 to 3.00 higher from 161.00 to 162.00. On the other hand dressed sales in the North were generally 2.00 higher at 255.00, with live sales in Iowa steady to 3.00 higher at 160.00. Trade volume was expected to grow through the end of the day. The weekly kill totaled 544,000 head, 19,000 less than last week and last year.
Boxed beef cutout values were lower on light demand and moderate offerings. Choice beef was down 2.10 at 239.08, and select was 1.58 lower at 233.81.
Chicago Mercantile Exchange live cattle contracts settle 125 to 300 higher as traders concentrated on the strength in the feeder cattle futures. Trade volume was light, but this support could spark additional bullish interest early next week. The main features in the cattle pits were short covering and cash premiums. February settle 2.65 higher at 156.07, and April was up 3.00 at 151.02.
Feeder cattle ended the session 276 to 390 points higher. Market support jumped quickly back into the futures market early Friday and gained momentum throughout the session. The ability to hold the aggressive price support through the close may spark increased interest in the market early next week. March was up 3.80 at 199.45, and April was 3.30 higher at 199.15.
Feeder cattle receipts at Missouri auctions this week totaled 19,196 head. Compared to the previous week, feeder steers and heifers sold uneven. Generally, feeders sold steady to 10.00 lower. However, there were spots of steady to 5.00 higher. Many producers were looking for replacement heifers to add to their breeding herds. As seen in the previous week a lot of pressure continues to come down on the heavier weight feeder steers and heifers destined to feedlots. Feeder steers, medium and large 1 averaging 770 pounds traded at 204.22 per hundredweight. 673 pound replacement heifers brought 223.14 per hundredweight.
Lean hogs settled 60 to 300 points higher. Support came from the aggressive action in the cattle pits, and stronger pork cutout values in the morning report. February settled .60 higher at 63.87, and April was up 3.00 at 69.27.
There was slow hog market activity with light demand on Friday. Barrows and gilts in the Iowa/Minnesota direct trade closed 1.22 lower with a weighted average of 60.93 on a carcass basis, the West was .12 higher at 60.79, and the East was not reported due to confidentiality. Missouri direct base carcass meat price was steady to 2.00 lower from 40.00 to 42.00.
The pork carcass cutout value was 1.03 lower FOB plant at 72.94, with only bellies and ribs higher.
Not only do oscillators suggest that lean hog futures are significantly oversold and due for a corrective bounce, extreme board discounts should soon be more likely to attract new buyers than additional sellers.
The weekly hog kill was estimated at 2,250,000 head, 5,000 less than last week, but 88,000 more than last year.