Thursday's Closing Grain and Livestock Prices.
Dec. corn closed at $4.38 and 1/4, down 5 and 1/4 cents
Nov. soybeans closed at $12.88, up 1/4 cent
Oct. soybean meal closed at $424.40, down 80 cents
Oct. soybean oil closed at 41.04, up 49 points
Dec. wheat closed at $6.85 and 1/2, down 5 cents
Oct. live cattle closed at $128.30, up 30 cents
Oct. lean hogs closed at $90.25, up 42 cents
Nov. crude oil closed at $103.01, up $1.40
Dec. cotton closed at 83.17, down 3 points
Oct. Class III milk closed at $18.18, up 4 cents
Oct. gold closed at $1,296.60, down $10.30
Dow Jones Industrial Average: 15,126.07, up 323.09 points
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Market News and ReCap
Soybeans were firm to modestly higher on technical and commercial buying, along with spillover from the outside markets. There’s new, but unconfirmed for now, talk of fresh export demand and the near term supply remains tight. Still, harvest weather looks good with warm temperatures and mostly dry conditions expected into the weekend. Soybean meal was down and bean oil was up on the continued adjustment of product spreads.
Corn hit more than three year lows on fund and technical selling. The trade expects a record crop and production prospects have definitely improved in some areas thanks to the warm, dry autumn weather. Past that – there was just no real fresh news, so contracts will take the past of least resistance over the near term. Ethanol futures were firm. Strategie Grains estimates 2013/14 European Union corn production at 64.9 million tons, up 900,000 from their last guess.
The wheat complex was modestly lower on technical and fund selling, along with spillover from corn. Recent rainfall in the Plains is favorable for hard red winter development, but high winds could create some issues. In any event, hard and soft red winter planting is going well and Russia and Ukraine are expected to see improved weather. The Buenos Aires Grain Exchange projects Argentina’s 2013/14 wheat crop at 10.35 million tons, up 17.6% from 2012/13. Strategie Grains sees 2013/14 European Union soft wheat production at 135.2 million tons, down 300,000 from the prior estimate. Egypt canceled a tender for an unspecified amount of wheat citing high prices, while Algeria bought 500,000 tons of likely French origin wheat.
Feedlot country was at a standstill on Thursday afternoon, though private sources report some Northern packers are showing selective interest here and there on better grading cattle. DTN reported a few cattle sold in Iowa on a live basis at 125.00. Significant trade is postponed until sometime on Friday. Asking prices are firm at 128.00 to 129.00 in the South and 200.00 to 202.00 in the North. DTN estimated the Thursday cattle slaughter at 122,000 head. The belief is the weekly total will come very close to last week at approximately 600,000 head. Not much is being heard about the wholesale beef trade, but earlier talk suggested steady prices with light box movement.
Live cattle contracts on the Chicago Mercantile Exchange settled unchanged to 35 points higher as firm buyer support trickled into the market. The nearby contract held a 30 cent gain into the close, and that created support through the complex. Strong outside market gains sparked increased interest by commercial traders which focused on the potential that some longer term agreements may be starting to develop through the government. October settled .30 higher at 128.30, and December was up .22 at 133.17.
Feeder cattle ended the session 115 to 155 points higher. Sharp gains developed through the feeder cattle complex. Traders focused not only on the lack of support in corn futures but also potential light supplies. It is uncertain just how many cattle have been affected by winter storms across the North. But traders’ expect that this will affect placement numbers over the next couple of months and are factoring this into nearby price levels. October settled 1.37 higher at 165.92, and November was up 1.55 at 167.92.
Feeder cattle receipts at the Springfield, Missouri Livestock Marketing Center totaled 1945 head on Wednesday. Compared to last week, feeder steers weighing less than 600 pounds traded steady to 6.00 higher, over 600 pounds steady to 4.00 higher and all weights of feeder heifers were 1.00 to 6.00 lower. The demand was moderate to good, on a moderate supply. Feeder steers medium and large 1 weighing 600 to 700 pounds brought 155.00 to 176.00 per hundredweight, 7 to 8 weights traded from 158.00 to 165.00. Feeder heifers weighing 600 to 700 pounds brought 142.00 to 151.50 and 7 to 8 weights from 131.00 to 145.50
Lean hogs settled unchanged to 42 points higher. Lean hogs spent much of the session in mixed trade with the focus on the firm gains in cattle futures drawing the front months higher. Traders seemed to be comfortable with the current supply and demand balance for the moment. October settled .42 higher at 90.25 and December was up .12 at 86.65.
Barrows and gilts at Peoria, Illinois closed 1.00 lower from 57.00 to 59.00 on a live basis; sows were 2.00 lower from 63.00 to 69. Zumbrota, Minnesota hog market was 1.00 higher at 62.00, and Dorchester, Wisconsin closed steady at 60.00. Missouri direct base carcass meat price was steady from 83.00 to 85.00 and sows ended steady on a cash basis in Missouri from 60.00 to 70.00.
The pork carcass value is really struggling in the face of seasonal increases in slaughter and production. Private sources indicate that faltering belly demand is especially a problem.
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