Wednesday's Closing Grain & Livestock Futures Prices
May corn closed at $5.03 and 1/2, up 7 and 1/4 cents
May soybeans closed at $14.68 and 1/2, down 11 and 1/4 cents
May soybean meal closed at $478.10, down $1.70
May soybean oil closed at 42.50, down 24 points
May wheat closed at $6.76 and 1/2, up 3 and 1/2 cents
Apr. live cattle closed at $143.92, up 22 cents
Jun. lean hogs closed at $126.25, up $3.00
Jun. crude oil closed at $101.44, down 31 cents
Jul. cotton closed at 92.64, down 61 points
May Class III milk closed at $22.41, up 12 cents
Jun. gold closed at $1,284.60, up $3.50
Dow Jones Industrial Average: 16,501.65, down 12.72 points
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Market News Review
Soybeans were mixed on old crop/new crop spread trade. There are more reports of U.S. soybean imports and a lot of uncertainty about Chinese demand. Past that – the trade’s watching South America’s harvest. Soybean meal matched beans and bean oil was weak on profit taking and the lower crude oil. ABIOVE lowered its 2014 Brazilian soybean export estimate to 43 million tons due to those concerns about Chinese demand. USDA’s weekly export sales report is out Thursday at 8:30 AM Eastern/7:30 AM Central. Old crop soybeans are pegged at -250,000 to 100,000 tons, with new crop at 300,000 to 625,000, old crop meal is seen at 25,000 to 175,000 tons, with new crop at 25,000 to 125,000 tons, and old crop oil is placed at 0 to 50,000 tons, with new crop at 0 to 10,000.
Corn is higher on fund and commercial buying. Demand’s the big factor for corn, from both the export side and the domestic side of the market. Additionally, the trade’s concerned about planting delays in some key growing areas. Ethanol was mixed, with May through September contracts up modestly. China may not be buying U.S. corn, but Beijing did pick up 120,000 tons of old crop U.S. sorghum. The EIA reports ethanol production for the week ending April 18 was an average of 910,000 barrels per day. Weekly old crop U.S. corn sales are estimated at 300,000 to 800,000 tons, with new crop at 100,000 to 250,000 tons.
The wheat complex was higher on fund and technical buying, in addition to spillover from corn. The complex is watching chances for rain in the Southern Plains, in addition to a potential cold snap. The trade’s also assessing freeze damage from earlier this year. Japan bought 29,700 tons of U.S. hard red winter and 21,800 tons of U.S. dark northern spring, along with 25,100 tons of Canadian western red spring and 32,200 tons of Australian standard white. Iran bought 60,000 tons of wheat from Russia. Weekly old crop U.S. wheat sales are projected at 100,000 to 450,000 tons, with new crop at 225,000 to 450,000 tons.
There was limited activity in the cash cattle trade on Wednesday afternoon with just a few preliminary bids noted in parts of Nebraska at 232.00 to 233.00, and Kansas and Texas at 142.00. Asking prices are around 148.00 in the South and 238.00 plus in the North. Significant trade volume may not develop until Thursday or Friday. The kill totaled 115,000 head, even with last week, but 9,000 less than last year.
Boxed beef cutout values were higher on moderate demand and moderate offerings. Choice beef was up 1.43 at 232.64, and select was 1.05 higher at 220.67.
Chicago Mercantile Exchange live cattle contracts settled 15 to 52 points higher. There was narrowly mixed trade for much of the session as traders exited the soon to expire April market and move into the June and August futures contracts. The April was able to sustain price levels above the 143.00 per hundredweight threshold. Higher boxed beef values were supportive to the summer contracts. April settled .22 higher at 143.92, and June was up .12 at 135.10.
Feeder cattle ended the session 17 to 32 points higher. The moderate gains held across the feeder cattle complex despite the firming tone of the corn markets and the lack of strong buyer interest in the live cattle market. Traders continue to look for additional direction from outside markets and potential additional insight into the upcoming cattle on feed report due for release Friday. May settled .27 higher at 178.62 and August was up .17 at 182.45.
Feeder cattle receipts at the Philip livestock Auction at Philip, South Dakota totaled 2871 head on Tuesday. Sales have not been reported recently so no price comparison can be made. There was good demand for a long string and many part loads and packages of feeder steers. Feeder and replacement heifers sold on an active to very active market. 779 pound feeder steers averaged 180.01 per hundredweight. 179 head of replacement heifers weighing 779 pounds brought an average of 187.48.
Lean hogs settled 35 to the 300 point limit higher. The firmness in both the cash values and pork carcass values in the morning report helped to redevelop buyer support. May settled 2.95 higher at 123.97, and June was up 3.00 at 126.25.
Barrows and gilts in the Iowa/Minnesota direct trade closed .48 higher at 116.20 weighted average on a carcass basis, the West was up 1.27 at 115.77, and the East was not reported due to confidentiality. Missouri direct base carcass meat price was steady from 105.00 to 107.00. Midwest barrows and gilts closed steady to 2.00 instance 4.00 lower from 78.00 to 90.00 on a live basis.
The pork carcass cutout value closed .32 higher at 117.41 FOB plant.
While summer lean hog futures remain far below the highs of the first quarter, steadily growing premiums over spring cash clearly reflect friendly price expectations, both in terms of tightening seasonal supplies and improving pork demand.
The hog kill was estimated at 418,000 head, 6,000 more than last week and the same as last year.
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