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Corn Futures Prices Jump On Bullish USDA Reports.

Friday's Closing Grain and Livestock Futures

Mar. corn closed at $4.32 and 3/4, up 20 and 3/4 cents
Jan. soybeans closed at $13.03 and 3/4, up 7 and 1/2 cents
Jan. soybean meal closed at $435.20, up $2.20
Jan. soybean oil closed at 37.95, up 21 points
Mar. wheat closed at $5.69, down 15 and 1/4 cents
Feb. live cattle closed at $136.70, up 15 cents
Feb. lean hogs closed at $85.82, up 57 cents
Feb. crude oil closed at $92.72, up $1.06
Mar. cotton closed at 82.59, down 22 points
Jan. Class III milk closed at $20.50, up 8 cents
Mar. gold closed at $1,247.30, up $17.60
Dow Jones Industrial Average: 16,437.05, down 7.71 points

For additional futures prices and charts click:

Market News Update

Click Here for the video of the USDA Report market analysis by Moe Agostino.

Soybeans were higher on fund and commercial buying, along with spillover from corn. 2013 soybean production was up on the year and larger than expected at 3.29 billion bushels, while quarterly stocks were up on the year, but ending stocks were unchanged, reflecting the strong demand. World ending stocks were up on the month and USDA did increase its outlook for Brazilian beans. China bought 216,000 tons of 2014/15 U.S. soybeans, picking up a combined 791,000 tons of combined old and new crop U.S. beans on the week. China’s Ministry of Customs adds December 2013 imports were a record for any month at 7.4 million tons due to strong crush demand, and 2013 imports were an all-time high at 63.38 million tons. Soybean meal was mixed, unable to hold onto earlier gains, and oil was up, settling near session highs.

Corn was sharply higher on fund and commercial buying. 2013 production was a new all-time high at 13.93 billion bushels, but that was less than what analysts had been expecting, so the report was bullishly construed. Quarterly and ending stocks were also below pre-report estimates. Unknown destinations bought 180,000 tons of U.S. corn for delivery during the current marketing year. Ethanol futures were higher. Rosstat, Russia’s statistics agency, states 2013 corn production was 10.7 million tons, compared to 8.2 million in 2012.

The wheat complex was lower on fund and commercial selling. The winter wheat planted area estimate was down on the year and smaller than expected, but the world supply is more than ample. Additionally, domestic quarterly and ending stocks were above what the trade was projecting. Venezuela purchased 125,700 tons of U.S. wheat, 79,450 tons hard red spring and 46,250 tons hard red winter, for delivery this marketing year. Taiwan bought 54,800 tons of U.S. milling wheat. Russia’s statistics agency Rosstat reports 2013 wheat production in clean weight was 52.1 million tons, compared to 37.7 million in 2012, and matching USDA’s estimate.

Northern bids on the cattle seemed to be improving on Thursday afternoon with regionals bidding as high as 220.00 in parts of Nebraska and Iowa. There were also a few bids on a live basis at 138.00 according to private sources. Asking prices are around 139.00 to 140.00 in the South and 220.00 to 222.00 in the North. It looks like prices will be higher for the week. The kill totaled 117,000 head, 4,000 below last week, and 9,000 smaller than last year.

Sharply higher boxed beef values on moderate to fairly good demand and light offerings. Choice boxed beef was up 1.92 at 212.05, and select was 1.98 higher at 209.05.

Live cattle contracts on the Chicago Mercantile Exchange closed higher with the exception of April. Futures traded in a mixed range much of the session following the erosion of early gains. Traders were focused on the potential of shifts in the cash cattle markets as well as positioning trades ahead of Friday’s USDA crop report. Significantly higher boxed beef values at midday gave a boost to futures. February settled .02 higher at 136.55, and April was down .10 at 136.87.

Feeder cattle futures ended the session 07 to 67 points higher with support coming from lower corn futures values and higher boxed beef prices. January settled .67 higher at 169.15, and March was up .27 at 168.82.

Feeder cattle receipts at the Huss Platte Valley Auction in Nebraska totaled 5600 head. Compared to the last fully tested market, steers weighing less than 700 pounds suited for summer turn out sold mostly 8.00 higher, over 700 pounds steady to 3.00 higher. Heifers weighing less than 550 pounds sold 9.00 higher, over 550 pounds 2.00 to 3.00 higher. Demand was good from start to finish from a large crowd of buyers. 439 feeder steers averaging 733 pounds brought 178.00 per hundredweight. 400 heifers weighing 676 traded at 169.56.

Lean hogs settled 12 t0 to 45 points lower. Futures bounced higher and lower through the morning, and regained losses seen early in the session. Traders remained concerned about the lack of support in the morning cash market report, which drew increased pressure into the complex. February settled .32 lower at 86.25, and April was down .37 at 90.72.

Barrows and gilts in the Iowa/Minnesota direct trade closed .01 higher at 78.25 weighted average on a carcass basis, the West was down .67 at 77.56, and Eastern hogs were 1.36 higher at 77.46. Missouri direct base carcass meat price was steady from 73.00 to 76.00. Terminal hogs were 1.00 lower to 2.00 higher from 51.00 to 56.00 live.

The pork cutout value was up 1.38 FOB plant at 84.64.

Iowa live weights jumped to a new record high last week with barrows and gilts averaging 282.9 pounds, 0.6 pounds bigger than the prior week and 6.6 pounds greater than 2013.

Despite the slow start to the slaughter week, pork processors appear to be planning a Saturday kill no larger than 145,000 head. This could be a reliable sign that they see live inventory significantly tightening.

The hog slaughter was estimated at 429,000 head, 3,000 less than last week, but the same as last year.



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