Friday’s Closing Grain and Livestock Futures
Mar. corn closed at $3.86 and 3/4, up 3 cents
Mar. soybeans closed at $9.72 and 3/4, down 4 cents
Mar. soybean meal closed at $331.50, up $1.40
Mar. soybean oil closed at 31.60, down 37 points
Mar. wheat closed at $5.30, down 3 and 3/4 cents
Feb. live cattle closed at $150.35, down $3.00
Feb. lean hogs closed at $69.30, down $2.30
Mar. crude oil closed at $45.59, down 72 cents
Mar. cotton closed at 57.30, down 46 points
Feb. Class III milk closed at $14.98, up 22 cents
Feb. gold closed at $1,292.60, down $8.10
Dow Jones Industrial Average: 17,672.60, down 141.38 points
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Market News Recap
Soybeans were lower on fund and technical selling. Weekly export sales were a new marketing year low after a couple of big cancellations. Past that – the trade’s watching weather in South America with more rain headed for central Brazil. Agroconsult projects Brazil’s crop at 93.9 million tons, down from their previous guess. Soybean meal was higher and bean oil was lower on the adjustment of product spreads.
Corn was higher on fund and technical buying. Weekly export sales were a new marketing year high, but it was yet another slow week for shipments. Still, 86 million bushels is an impressive amount of corn and the slow-down in bean sales could help corn. Ethanol futures were higher.
The wheat complex was mixed with Chicago and Kansas City lower on fund and technical selling, along with the higher dollar. Minneapolis was up fractionally. Weekly wheat export numbers were bearish and there was no fresh news. It’s expected to be a warm weekend in many U.S. winter wheat growing areas. The European Union issued export licenses on 728,000 tons of soft wheat.
Feedlot country was quiet on Friday afternoon with both sides shocked by the limit losses throughout the live and feeder futures. However, packers remain short bought and some late afternoon trade was expected following the cattle on feed report. Nominal asking prices were around 162.00 plus in the South and 260.00 plus in the North. The weekly cattle kill was estimated at 576,000 head, 30,000 greater than last week, but 24,000 less than 2014.
Boxed beef cutout values were lower on light to moderate demand and moderate offerings. Choice beef was down 1.91 at 253.74, and select was 1.66 lower at 247.28.
Total cattle on feed on January 1 was up one percent from a year ago, marketing’s were down five percent and placements into feedlots were down eight percent on the year. A complete report on cattle on feed can be found in the news section of our web site.
Chicago Mercantile Exchange live cattle contracts settled 215 to 300 points lower. The focus on potentially higher cattle on feed numbers ahead of the monthly report after the close of trade had many traders taking extra protection. The lackluster fundamentals continued to limit buyer support at the end of the week. February settled at 150.35, and April at 148.80 both the 3.00 limit lower.
Feeder cattle contracts were locked limit down in most contract months on uncertainty ahead of the cattle on feed report as well as aggressive limit down losses in the live cattle futures. Traders were unwilling to step back into the market given the aggressive weak tone developing in the complex. The limit down move in the March futures would open the door to expanded trade limits on Monday, which could add even more volatility as traders trade the result of the cattle on feed report. January settled 2.27 lower at 213.70, and March was the 4.50 limit lower at 201.87.
Feeder cattle receipts a Missouri auctions totaled 47,906 head this week. Compared to last week, feeder steers and heifers sold mostly 5.00 to 15.00 lower. A few cases of closer to steady money were noted mostly on lighter weight cattle, which would be suitable for grass in the coming months. This however was the exception, as the majority of cattle sold at lower levels. Heavy weight cattle, which have fewer days left before finishing, felt the most pressure as futures markets continued a downward slide. Feeder steers, medium and large 1 averaging 621 pounds brought 248.64 per hundredweight. 624 pound heifers averaged 219.83.
Barrows and gilts in the Iowa/Minnesota direct trade closed .06 lower at 69.04 weighted average on a carcass basis, the West was down .16 at68.94, and the East was 1.72 lower at 66.22. Missouri direct base carcass meat price was steady from 62.00 to 65.00.
Lean hogs settled 207 to 280 points lower as strong pressure held through the entire livestock market, and this included hog futures markets. The combination of sharp losses in cattle futures and weak pork values created a lack of interest of buyers stepping into the market from the sidelines. February settled 2.30 lower at 69.30, and April down 2.22 at 70.65.
The pork carcass cutout value was .32 lower at 84.38 FOB plant with only hams higher.
The weekly hog slaughter at 2,316,000 head is 59,000 more than last week and 102,000 greater than 2014.
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