Friday's Closing Grain and Livestock Futures
Dec. corn closed at $4.24, up 1 and 1/4 cents
Jan. soybeans closed at $13.25 and 1/2, down 2 and 1/2 cents
Dec. soybean meal closed at $447.30, up $1.20
Dec. soybean oil closed at 40.28, down 10 points
Dec. wheat closed at $6.37 and 1/4, down 3/4 cent
Dec. live cattle closed at $131.42, down 22 cents
Dec. lean hogs closed at $81.67, down 85 cents
Jan. crude oil closed at $97.65, up 27 cents
Mar. cotton closed at 80.41, up 156 points
Dec. Class III milk closed at $19.08, up 10 cents
Dec. gold closed at $1,230.30, down $2.90
Dow Jones Industrial Average: 16,020.20, up 198.69 points
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Market News Report
Soybeans were mixed, taking the path of least resistance and adjusting old crop/new crop spreads. South American development conditions look good and beneficial growing weather should lead to record crops. Unknown destinations bought more than 384,000 tons of U.S. beans, but there are uncertainties about long term Chinese demand. Soybean meal was mixed, consolidating, and bean oil was weak. India’s Solvent Extractors’ Association, via Dow Jones Newswires, reports soybean meal exports for November were 503,269 tons, down 2.67% on the year.
Corn closed firm thanks to a late short covering and technical bounce. There’s no fresh news for corn and the overall fundamentals remain bearish ahead of the USDA supply and demand update on the 10th. This year’s record crop is the big negative factor, but after hitting new contract lows earlier in the week, corn has seen support around current levels and ethanol demand is strong. Ethanol futures were higher Friday, supported by that demand.
The wheat complex was mixed in end of the week consolidation trade. The complex is keeping an eye on the weather around winter wheat growing areas, with cold temperatures and snow and ice reported in some areas. Past that – Canada’s larger than expected crop number from earlier in the week was a continued bearish factor. Iraq and Lebanon are each tendering for 50,000 tons of optional origin wheat.
USDA Mandatory reported cattle trading and demand was light to moderate in Nebraska on Friday. Compared to last week, live sales were steady to 2.00 lower with sales ranging from 131.00 to 133.00, and dressed sales were 1.00 to 2.00 lower for the week at 208.00 to 209. Trading was light in Colorado with live sales a 1.00 to 1.50 lower at 132.50 to 133.00. The Texas Panhandle and Kansas traded Thursday at 132.00.Slaughter cattle on a national basis for negotiated cash trades through Friday morning totaled about 71,140 head. The weekly kill was estimated at 629,000 head, 74,000 more than last week, but 12,000 less than last year.
Boxed beef cutout values were lower to sharply lower on light demand and light to moderate offerings. Choice beef was down .94 at 201.47 and select was 2.64 lower at 186.98.
Live cattle contracts on the Chicago Mercantile Exchange settled 17 points higher to 22 lower. Trade on Friday was a lackluster affair and spent much of the session modestly lower. The lack of buying interest in the wake of Thursday’s board crash suggests that many traders remained nervous relative to year end beef demand. Beef was lower at midday were down and the select was significantly lower. December cattle settled at 131.42 down .22, and February was .05 lower at 132.85.
Feeder cattle ended the session 15 to 35 points higher in extremely light trade volume. Modest strength in January and March contracts suggested some bull spreading interest, but significant features and trading strategies were difficult to identify. January settled .35 higher at 164.47, and March was up .25 at 164.67.
Feeder cattle receipts at Missouri Auctions this week totaled 57,367 head. The feeder supply was heavy, actually the second largest volume week of the year and short of topping the year by a few hundred head. Compared to last week’s much lighter holiday offering, feeder steers and heifers sold steady to 3.00 higher with some spots 4.00 to 7.00 higher on weights mostly less than 650 pounds. 2197 head of feeder steers, medium and large 1 weighing 572 pounds averaged 180.51 per hundredweight. 1391 steers averaging 723 brought 164.94. 1470 heifers with an average weight of 575 pounds averaged 161.39, and 716 pound heifers traded at 155.83.
Lean hogs ended the session 32 points higher to 85 lower. The nearby contract lost significant ground. Further erosion in the live trade suggests the index will soon fall lower, once again making board premiums look vulnerable. Carcass value was sharply lower in the morning report due to poor loin demand. December was down .85 at 81.67, and February was up .32 at 89.00.
Barrows and gilts in the Iowa/Minnesota direct trade closed .60 higher with a weighted average of 79.28 on a carcass basis, the West was up .36 at 78.02, and the East was not reported due to confidentiality. Missouri direct base carcass meat price was steady from 71.00 to 72.00.
The pork carcass value was up .99 at 90.32 FOB plant on a negotiated basis in the afternoon report.
Seasonal hog numbers may have peaked, but it’s tough to see immediate signs that live supplies will fall off a cliff anytime soon.
The weekly hog slaughter was estimated at 2,325,000 head 263,000 more than the holiday week, but 38,000 less than last year.
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