Wednesday's Closing Grain and Livestock Futures Prices
Sep. corn closed at $3.78 and 1/4, up 4 and 1/4 cents
Aug. soybeans closed at $11.87 and 1/4, up 6 and 3/4 cents
Aug. soybean meal closed at $383.70, up $4.60
Aug. soybean oil closed at 36.83, down 7 points
Sep. wheat closed at $5.38, up 1/4 cent
Aug. live cattle closed at $147.67, down 90 cents
Aug. lean hogs closed at $130.52, down 20 cents
Aug. crude oil closed at $101.20, up $1.24
Oct. cotton closed at 68.39, up 14 points
Aug. Class III milk closed at $21.27, up 25 cents
Aug. gold closed at $1,299.80, up $2.70
Dow Jones Industrial Average: 17,138.20, up 77.52 points
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Agri Markets News Review
Soybeans were higher on fund and technical buying. Contracts are oversold after dropping around dollar fifty in the last couple of weeks. It looks like that has sparked new demand with China buying 120,000 tons of old crop U.S. beans and unknown picking up 240,000 tons of new crop. New crop outgained old crop, keeping an eye on the mostly dry and cooler than normal weather in the near term forecast. Soybean meal was up and bean oil was down on the adjustment of product spreads.
Corn was higher on fund and technical buying. Corn saw a bounce of off the recent near four year lows and unknown bought 210,448 tons of new crop U.S. corn. Past that – crop development weather looks good for most of the Midwest, at least right now, with parts of the Northern Cornbelt concerned about the potential, however remote, for an early frost. Ethanol futures were higher. The EIA reports ethanol production for the week ending July 11 was 943,000 barrels per day, up 16,000 on the week, with stocks at 17.9 million barrels, down almost 2%.
The wheat complex was mixed, with Chicago firm, following corn and soybeans. Wheat was also oversold and due for a bounce after the recent losses, but given the slow export demand and large available world supply, it’s going to be hard to get a whole lot of traction. The winter harvest is moving towards the finish and spring wheat development conditions look good. Japan is tendering for 122,700 tons of U.S. and Australian wheat.
USDA Mandatory is reporting a limited cattle trade in Kansas on Wednesday afternoon on light to moderate demand. Compared to last week, a few early sales are mostly 1.00 lower at 155.00.The rest of cattle country is quiet with the only other bids on the table in Texas. Asking prices are around 156.00 to 158.00 in the South and 248.00 to 250.00 in the North. The slaughter totaled 116,000 head, 2,000 more than last week, but 10,000 less than last year.
Boxed beef cutout values were firm on choice and weak on select on light to moderate demand and offerings. Choice beef was .29 higher at 250.82, and select was down .60 at 242.86.
Live cattle contracts on the Chicago Mercantile Exchange settled 35 to 90 points lower fueled by the aggressive losses in the feeder cattle futures and an overall lack of interest in any nearby livestock markets on Wednesday. Light pressure in the boxed beef values and the uncertainty surrounding the stability in cash cattle markets later in the week is not giving trader’s confidence. But at the same time, given the current price range the market is far from doom and gloom, in the sense that selling activity remains extremely limited beyond the $1.00 per hundredweight lower level. August settled .90 lower at 147.67, and October is down .55 at 151.30.
Feeder cattle ended the session 110 to 190 points lower. Although the nearby contracts backed away from session lows above $2.00, strong pressure continued to hold across the complex through the close. Aggressive buyer support in grain markets put the emphasis back on the potential to increase production costs and quickly limited overall interest across the entire feeder cattle market. August settled 1.70 lower at 209.82, and September was down 1.32 at 210.50.
Feeder cattle receipts at the Ozark’s Regional Stockyards at West Plains, Missouri totaled 3347 head on Tuesday. Compared to last week, feeder steers traded 5.00 to 10.00 lower with lightly tested yearlings steady to 5.00 lower. Feeder heifers weighing less than 600 pounds were steady to 5.00 lower with heavier weights 10.00 lower. The demand for feeders was good on a moderate supply. Feeder steers medium and large 1 averaging 626 pounds traded at 235.62 per hundredweight. 620 pound heifers averaged 224.75.
Lean hogs settled 125 points higher to 87 lower but off the lows of the day. The lack of support through the rest of the livestock markets and firm gains in the grain complex kept traders less focused on any tight supply situation that may exist and willing to square positions following market shifts the last few sessions. August settled .20 lower at 130.52, and October was down .87 at 115.07.
Barrows and gilts Iowa/Minnesota direct trade closed 1.65 lower at 130.47 weighted average on a carcass basis, the West was down 1.35 at 130.41, and the East was not reported due to confidentiality. Missouri direct base carcass meat price was steady to 2.00 higher at 122.00. Barrows and gilts at Midwest markets were steady to 1.00 higher from 87.00 to 94.00 live.
While hog carcass weights could edge some lower over the next two to four weeks, most expect them to remain 10 pounds or more above 2013 levels. Furthermore, the next major swing in weights, starting in late summer and extending for months will be heavier, not lighter.
The pork carcass cutout value was .71 higher at 135.39 FOB plant.
The Wednesday hog kill was estimated at 395,000 head, 2,000 less than last week and down 11,000 from last year.
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