Friday’s Closing Grain and Livestock Futures
Mar. corn closed at $4.00 and 1/4, up 6 cents
Jan. soybeans closed at $10.51 and 1/2, up 6 and 1/2 cents
Jan. soybean meal closed at $363.80, up $2.50
Jan. soybean oil closed at 33.54, down 4 points
Mar. wheat closed at $5.63 and 3/4 , down 3 and 1/4 cents
Feb. live cattle closed at $160.60, down $3.00
Feb. lean hogs closed at $79.02, up 85 cents
Feb. crude oil closed at $48.36, down 43 cents
Mar. cotton closed at 60.76, up 20 points
Jan. Class III milk closed at $15.97, down 3 cents
Jan. gold closed at $1,216.00, up $7.60
Dow Jones Industrial Average: 17,737.37, down 170.50 points
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Market News Recap
Soybeans were higher on fund and technical buying. The trade’s getting ready for Monday’s USDA numbers, expecting a large 2014 crop and strong demand. The trade’s also keeping an eye on hot, dry weather in parts of Brazil. Conditions in southern Brazil and Argentina appear to be more conducive for development. CONAB now sees Brazil’s soybean crop at 95.9 million tons. Soybean meal was higher and bean oil was lower on the adjustment of product spreads.
Corn was higher on fund and technical buying. South Korea bought 136,000 tons of U.S. corn and unknown destinations picked up 116,000 tons of U.S. sorghum, both for delivery this marketing year. Quarterly stocks will be ample due to the record crop, but could still reflect some very strong demand. Ethanol futures were higher. CONAB currently projects Brazilian corn production at 79.1 million tons.
The wheat complex was lower on fund and technical selling. U.S. winter wheat growing areas are expected to see warmer weather over the next few days. Monday, winter wheat planting is expected to be about steady with last year. Egypt bought 180,000 tons of wheat from France and a South Korean feed mill picked up 45,000 tons of likely Black Sea origin feed wheat.
Cattle country was quiet on Friday afternoon with business done for the week. Once you turn your gaze from bearish futures, the cash trade looks quite bullish. It looks like the five area steer average this week totaled close to 170.00 approximately $4.00 higher than the previous week. It would appear packers entered the New Year very short bought and or have a desire to force cutouts higher by limiting production. The weekly slaughter was estimated at 538,000 head, 86,000 more than the previous week. but 35,000 less than last year.
Boxed beef cutout values closed higher on moderate to fairly good demand and light to moderate offerings. Choice boxed beef was up 2.22 at 256.79 and select was 2.89 higher at 248.23.
Live cattle contracts on the Chicago Mercantile Exchange settled 200 to 300 points lower on Friday. Nearby contracts were locked limit down as the focus on the complex was weakened at the end of the week. The sharp up and down shifts seen through the entire market over the last few weeks is creating some widespread uncertainty about whether this is just another round of short term selling, or if a sense of long term direction will be seen once the dust clears. February settled at 160.60 and April 159.42 both the 3.00 limit lower.
Feeder cattle settled 320 to 450 points lower remaining weak with limit or near limit trade. The concern about falling live cattle futures and the uncertainty to draw aggressive support back into the complex over the coming weeks sparked additional softness. January settled 3.20 lower at 222.45, and March was down 4.50 at 212.55.
Feeder cattle receipts at the Joplin Regional Stockyards totaled 3400 head on Thursday. There has been no recent value added sale for a price comparison. Compared to Monday’s regular feeder sale, steers under 600 pounds and heifers weighing 550 pounds were 5.00 to 10.00 higher. Steers over 600 pounds and heifers over 550 pounds steady to 5.00 higher. Demand was good on a moderate supply. Feeder steers medium and large 1 averaging 768 pounds brought 229.75 per hundredweight. 626 pound heifers traded at 232.29.
Lean hogs settled 12 points lower to .85 higher. The lean hog trade seemed to be able to ignore the bearish shifts in the cattle complex. Prices were mixed in a narrow range for much of the session as most traders seemed comfortable with the current position for the moment and only focusing on light end of the week adjustments. The changes in processing schedules due to weather may create some additional volatility over the coming days, but may not spark widespread interest. February settled .85 higher at 79.02, and April was up .10 at 80.05.
Barrows and gilts in the Iowa/Minnesota direct trade closed .31 lower at 72.46 weighted average on a carcass basis, the West was down .29 at 72.38, and the East was not reported due to confidentiality. Missouri direct base carcass meat price was steady at 69.00.
The pork carcass cutout value was .05 higher at 83.96 FOB plant.
DTN reports they continue to hear about serious PRSS problems across the heart of hog production country. Especially the devastating “174”strain, causing death loss and or weight loss among both sows and market hogs.
The weekly hog kill was estimated at 2,163,000 head, 165,000 more than last week, and 74,000 more than last year.
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