Tuesday's Closing Futures Prices
Dec. corn closed at $3.40 and 1/2, up 8 cents
Nov. soybeans closed at $9.40 and 3/4, down 1 and 1/2 cents
Oct. soybean meal closed at $327.00, up $6.70
Oct. soybean oil closed at 32.96, down 36 points
Dec. wheat closed at $5.06 and 1/4, up 14 and 3/4 cents
Oct. live cattle closed at $165.77, up $2.72
Oct. lean hogs closed at $107.22, up 5 cents
Nov. crude oil closed at $88.85, down $1.49
Dec. cotton closed at 65.21, up 83 points
Oct. Class III milk closed at $23.90, down 21 cents
Oct. gold closed at $1,211.70, up $5.00
Dow Jones Industrial Average: 16,719.39, down 272.52 points
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Ag Market News And ReCap
Soybeans were mixed in consolidation trade. This year’s harvest is slower than average and demand continues to look strong. Still, the long term fundamentals remain bearish, due to the expected record crop, and the USDA’s crop condition rating did improve over the past week, even with the weather. Soybean meal was up and bean oil was down on the adjustment of product spreads. The trade’s getting ready for Friday’s USDA numbers, while watching the early, slow, planting pace in South America.
Corn was higher on short covering, technical buying, and spillover from wheat. This year’s corn harvest is also slower than average following the recent widespread rainfall. Unknown destinations bought 210,000 tons of 2014/15 U.S. corn. In any event, the fundamentals remain bearish and there could be a very large crop estimate in the USDA report on Friday. Ethanol futures were higher.
The wheat complex was higher on commercial and technical buying. Wheat’s continuing to see new demand tied to the decline in price and some world crop problems. The spring harvest and winter planting paces are right around average. Japan’s tendering for 108,900 tons of U.S. and Canadian food wheat, and Turkey is in the market for 200,000 tons of milling wheat.
The cash cattle market was not established on Tuesday afternoon with bids and asking prices poorly defined. Sharply higher futures are no doubt working to reinforce feedlot lot bullishness. DTN guesses asking prices are around 165.00 in the South and 255.00 to 260.00 plus in the North. The cash trade may go untested until late in the week. The kill totaled 115,000 head, even with last week, but 9,000 smaller than 2013.
Boxed beef cutout values ended sharply higher on moderate to fairly good demand and light to moderate offerings. Choice boxed beef was up 2.74 at 243.85, and select was 3.09 higher at 232.26.
Chicago Mercantile Exchange live cattle contracts settled 90 to 272 points higher, supported by technical buying and cash optimism based on bullish fundamentals. Some contracts set new all-time highs. October was up 2.72 to settle at 165.77, and December was up 1.55 at 167.85.
Feeder cattle ended the session 142 to 250 points higher. Historically tight replacement numbers and strong feedlot demand seemed to be an explosive combination according to John Harrington at DTN. October was 1.47 higher at 241.47, and November was up 2.15 at 242.42.
Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 8800 head. Feeder steers and heifers trended 5.00 to 7.00 higher with instances of up to 12.00 higher on 700 to 750 pound steers. Steer calves were mostly 7.00 to 15.00 higher. Heifer calves mostly steady to 2.00 higher. Feeder steers medium and large 1 averaging 574 pounds traded at 269.23 per hundredweight. 572 pound heifers brought 242.48.
Lean hogs settled 145 higher to 152 points lower. The December through April contracts traded lower while October and the far deferred issues were some higher. October was supported was supported by the premium of the cash index. Bear spreading appeared to lend support to contracts in the second half of 2015. October was up .05 at 107.22, and December was down 1.52 at 94.35.
There was slow hog market activity, with light to moderate demand. Barrows and gilts in the Iowa/Minnesota direct trade closed 1.03 lower at 108.18 weighted average on a carcass basis, the West was down .66 at 108.05, and the East was not reported due to confidentiality. The Missouri direct base carcass meat price was steady to 1.00 higher from 96.00 to 102.00. Midwest hogs on a live basis were fully steady from 72.00 to 80.00.
The pork carcass cutout value FOB plant was down .70 at 123.75. Picnics and ribs were higher with all other primal cuts lower.
Dressed hog weights are holding steady at 212 pounds but should begin to trend heavier soon as we have already begun to see an uptick in live weights. The increase in hog weights through October and November should continue to partially offset reductions in pork production due to lighter weekly marketing’s.
The Tuesday hog kill was estimated at 428,000 head, 4,000 more than last week, but 4,000 less than last year.
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