Closing Grain and Livestock Futures
Dec. corn closed at $4.63 and 1/2, down 4 and 3/4 cents
Nov. soybeans closed at $13.56 and 1/2, down 11 and 1/4 cents
Oct. soybean meal closed at $430.60, down $4.10
Oct. soybean oil closed at 42.88, down 55 points
Dec. wheat closed at $6.41 and 1/4, down 6 and 1/2 cents
Oct. live cattle closed at $125.35, down 32 cents
Oct. lean hogs closed at $90.87, down 2 cents
Oct. crude oil closed at $109.52, down $1.01
Dec. cotton closed at 83.50, up 29 points
Sep. Class III milk closed at $18.14, up 8 cents
Oct. gold closed at $1,386.40, up 20 cents
Dow Jones Industrial Average: 15,063.12, up 140.62 points
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Market News and ReCap
Soybeans were lower on fund and technical selling. It was another mostly hot and dry weekend around key U.S. growing areas but forecasts for next week do show an increased chance of rain. USDA reports 97% of soybeans are at the pod setting stage, compared to 99% a year ago and the five year average of 98%, with 11% dropping leaves, compared to 34% last year and 19% on average, and 52% of beans rated good to excellent, down 2% on the week. Soybean meal was mixed and bean oil was lower. According to Dow Jones Newswires, China bought 6.37 million tons of soybeans in August, down 11.5% on the month, but up 44.1% on the year, with year to date purchases at 41.05 million tons.
Corn was lower on technical and fund selling. Corn’s also watching the weather and while the trade is expecting a record crop and big jump in ending stocks, some yield has been lost. According to USDA, 92% of corn is at the dough making stage, compared to 99% last year and 94% on average, with 64% dented, compared to 92% a year ago and 75% on average, and 9% mature, compared to 55% last year and 28% on average. 54% of corn is rated good to excellent, down 2% from a week ago. Ethanol futures were lower. DTN reports South Korean animal feed manufacturers bought 263,000 tons of corn over the weekend. 134,000 tons are either U.S. or South American origin and 129,000 tons are optional origin.
The wheat complex was lower on fund and technical selling. There’s some rain headed for parts of the Southern Plains, but most of the hard red winter region remains dry ahead of planting. For spring wheat, 80% is harvested, compared to 97% last year and 79% on average, while for winter wheat, 5% is planted, compared to 4% a year ago and 5% on average. European wheat was lower.
Cattle country is typically quiet on Monday afternoon after the distribution of the new showlists. The new offering is generally larger in the South, but smaller in the North. A few showlists have been priced around 125.00 plus in the South and 196.00 to 198.00 in the North. Once again significant trade volume will probably be delayed until the second half of the week. The kill totaled 117,000 head, 11,000 smaller than a year ago, but not comparable to last week’s holiday slaughter.
Boxed beef cutout values were lower on light to moderate demand and moderate offerings. Choice boxed beef is down .90 at 194.33, and Select is 1.33 lower at 179.86.
Chicago Mercantile Exchange live cattle contracts settled 5 to 32 points lower. Trade through the live cattle pit was lethargic to say the least. Traders concentrated on the lack of support through the complex and the uncertainty in beef values and cash cattle prices. October settled .32 lower at 125.35, and December was down .30 at 128.72.
Feeder cattle ended the session 2 to 50 points higher. The turn lower in grain prices through the morning helped to draw buyers into the front month futures. September settled .02 higher at 156.60 and October was also up .02 at 158.05.
Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 7800 head. Compared to two weeks ago, feeder steers and heifers traded steady to firm. Steer and Heifer calves sold mostly steady. The demand was called moderate to good. Feeder steers, medium and large 1 weighing 600 to 650 pounds brought 160.00 to 166.50. 6 to 7 weight heifers traded from 145.00 to 151.25.
Lean hogs settled 10 to 62 points higher with only October lower. Trade interest through the lean hog futures was hard to pinpoint through much of the session. Traders bounced back from triple digit gains seen last week. A real sense of direction was difficult to establish early. Lower cash prices weighed on futures but the market benefitted from higher pork values at the end of the week and in the Monday morning trade. October settled .02 lower at 90.87, but December was up .62 at 87.62.
There was slow hog market activity with light demand. Barrows and gilts in the Iowa/Minnesota direct trade are 1.16 higher at 91.36 on a carcass basis, the West is up 1.02 at 91.24, and Eastern hogs are down .70 at 86.03. Missouri direct base carcass meat price is 1.00 higher from 82.00 to 83.00. Terminal hogs closed steady to 1.00 higher from 56.00 to 66.00.
The pork carcass cutout value FOB plant ended .45 higher at 95.89 on a negotiated basis.
Last week signs and attitudes suggest that hog buyers are walking into the first full work week of September relatively close to the knife — close enough to keep cash bids firm for the next several days.
Monday’s hog kill was estimated at 417,000 head. Last Monday was a holiday, and down 19,000 head from a year ago.
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