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Soybean, Wheat & Corn Futures Markets Higher

Tuesday's Closing Grain and Livestock Futures
May corn closed at $4.86 and 1/4, up 7 and 1/4 cents
May soybeans closed at $14.18 and 1/4, up 26 and 1/2 cents
May soybean meal closed at $455.80, up $9.20
May soybean oil closed at 42.27, up 38 points
Mat wheat closed at $6.92 and 1/2, up 18 cents
Apr. live cattle closed at $145.70, up 67 cents
Apr. lean hogs closed at $123.22, up $1.52
Apr. crude oil closed at $99.70, up $1.62
May cotton closed at 92.93, up 90 points
Mar. Class III milk closed at $23.32, down 17 cents
Apr. gold closed at $1,359.00, down $13.90
Dow Jones Industrial Average: 16,336.19, up 88.97 points

For additional futures prices and charts click http://www.farms.com/markets

Market News Update:

Soybeans were higher on fund and commercial buying. The near term supply remains tight and demand is strong, with USDA’s quarterly stocks report out on the 31st. The trade’s also watching harvest activity in South America with the potential for delays in some key growing areas, along with the export market. Soybean meal and oil were higher, following beans.

Corn was higher on fund and technical buying, along with spillover from beans and wheat. Corn’s also waiting for the USDA stocks report, in addition to the prospective planting numbers. Planting is underway in parts of the Delta and Texas, and, at least in Texas, the pace is slower than average due to continued dry conditions. Ethanol futures were higher.

The wheat complex was higher on fund and speculative buying. Hard red winter crop conditions around the Plains dropped last week due to dry soil and windy weather. Also, there’s more talk about planting delays for the spring crop. Additionally, Egypt bought 175,000 tons of wheat, 55,000 tons of that U.S. soft red winter, along with 60,000 tons each from Romania and Russia. Ukraine’s Ag Ministry reports 28% of spring grain crops are planted, ahead of last year’s pace. Lebanon picked up 25,000 tons of milling wheat from Kazakhstan.

The cash cattle trade remained untested on Tuesday afternoon with virtually no definition in terms of packer bids. A few showlists have been priced around 151.00 in the South and 245.00 plus in the North. Significant trade volume may not develop until Thursday or Friday. Tuesday’s cattle slaughter was estimated at 118,000 head, 4,000 more than last week, but 2,000 less than a year ago.

Boxed beef cutout values were higher on moderate demand and light offerings. Choice boxed beef was up 1.21 at 244.06, and select is up 1.13 at 237.00.

Chicago Mercantile Exchange live cattle contracts settled mixed. The early trade was slow to develop hovering on either side of unchanged through the forenoon. The aggressive support in lean hog futures combined with firming beef cutout values helped to push the front month’s futures higher. Traders continued to concentrate on momentum in the hog complex. Traders also watched outside markets for further direction. April settled .67 higher at 145.70 and June was up .37 at 138.35.

Feeder cattle contracts ended 7 to 107 points lower. Moderate to strong support through the grain markets offset any potential support in live cattle futures when it comes to movements in the feeder cattle complex. March settled .62 lower at 174.12 and April was down 1.07 at 176.90.

Feeder cattle receipts at the Sioux Falls Regional Stockyards at Worthing, South Dakota totaled 4072 head on Monday. Compared to last week, feeder steers weighing less than 800 pounds were 4.00 to 7.00 higher, except 650 to 750 pounds 7.00 to 10.00 higher, over 800 pounds steady to 1.00 higher. Heifers weighing less than 850 pounds were 4.00 to 8.00 higher, with some 550 to 650 weights fully 10.00 higher. Feeder steers averaging 665 pounds averaged 199.40 per hundredweight. 685 pound heifers traded at 176.58.

Lean hogs settled mostly higher with triple digit gains with only the October and December contracts ending lower. Traders continued to focus on the continued tightness in the market as well as the potential to draw additional commercial and noncommercial buyers into the market over the next couple of weeks. Gains in late summer contracts led the surge higher, with concerns of supplying needed hog numbers through the next few months. August settled near limit higher and that kept buyers firmly holding onto positions through the other contract months. April ended 1.52 higher at 123.22, and June was up 2.22 at 133.00.

Barrows and gilts in the Iowa/Minnesota direct trade closed 2.01 higher at 121.13 weighted average on a carcass basis, the West was up 2.07 at 120.73, and the East was not reported due to confidentiality. Missouri direct base carcass meat price was 1.00 to 5.00 higher from 110.00 to 115.00. Terminal hogs were steady to 2.00 higher from 76.00 to 80.00.

Pork cutout value was up 3.55 at 129.57 in the afternoon report FOB plant. Butts and hams were responsible for the gains.

While PED data continues to be discouraging, supply is only one side of the market machine. Few doubt the market is susceptible to a reversal at any given point at current high prices, when fully passed through to the end consumer at the meat case, will reduce consumptive demand and hog prices could plummet even if supplies turn out to be even tighter than expected.

The hog slaughter was estimated at 420,000 head, 7,000 more than last week, but 7,000 less than last year.

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