Wednesday's Closing Grain and Livestock Futures
Jul. corn closed at $7.09 and 3/4, up 5 and 3/4 cents
Jul. soybeans closed at $15.91 and 3/4, down 21 and 1/2 cents
Jul. soybean meal closed at $520.50, down 30 cents
Jul. soybean oil closed at 46.98, down 10 points
Jul. wheat closed at $6.72, down 3 and 1/2 cents
Aug. live cattle closed at $122.07, down 65 cents
Jul. lean hogs closed at $101.91, up $1.07
Aug. crude oil closed at $106.52, up $2.99
Oct. cotton closed at 87.30, up 62 points
Jul. Class III milk closed at $17.41, up 11 cents
Jul. gold closed at $1,247.40, up $1.50
Dow Jones Industrial Average: 15,291.66, down 8.68 points
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Market News and ReCap
Soybeans were mixed ahead of Thursday’s USDA report. July was down on lower cash basis levels, which spilled over into August, but the other months were up. July CBOT contracts expire Friday. Old crop ending stocks should be down on the month with at least a slight increase in the new crop guess. There are concerns about wet weather in some areas and China bought a record amount of beans last month. Beijing, during June, purchased 6.93 million tons of beans, up 36% on the month and 23% on the year thanks to easing port congestion in Brazil. For the first half of 2013, total imports are 27.49 million tons, up 5.4% from January to June 2012. Soybean meal and oil were mixed, with July down and other months steady to firm. USDA’s weekly export sales report is out Thursday at 8:30 AM Eastern/7:30 AM Central. Soybeans are pegged at 150,000 to 500,000 tons, meal is seen at 75,000 to 150,000 tons, and oil is placed at 0 to 10,000 tons.
Corn was mixed as traders get ready for the report. On average, traders expect old and new crop ending stocks to be down from June, but the range of estimates is wide for both. Past that – corn’s also watching weather and the slow development pace of this year’s crop. South Korea’s Major Feedmill Group bought 120,000 tons of optional origin corn and China picked up 120,000 tons of 2013/14 U.S. corn. Ethanol was mostly higher. According to France’s Agrimer, 2012/13 domestic corn production should be around 15.3 million tons, compared to 15.6 million in 2011/12. Weekly U.S. corn sales are expected to be between 300,000 and 600,000 tons.
The wheat complex was mixed ahead of the USDA numbers. On average, the trade expects the winter wheat estimate to be down on the month with spring wheat below a year ago. The ending stocks guess should also be down on the month. Both reports are out Thursday at Noon Eastern/11 AM Central. European wheat was little changed. The Commodity Credit Corporation is tendering for 22,000 tons of hard red winter wheat for Syria and 15,000 tons of hard red winter for Yemen. In sell-buy-sell trade, Japan is in the market for 120,000 tons of feed wheat. France’s Agrimer projects 2012/13 domestic soft wheat production at 35.6 million tons, compared to 34 million last year, with total soft wheat exports at 17.1 million tons, and hard wheat production at 2.4 million tons. Weekly U.S. wheat sales are projected at 600,000 to 1 million tons.
Chicago Mercantile Exchange live cattle futures were lower on slow beef demand and traders waiting for widespread cash business to get underway. Traders will also want to get a look at USDA’s revised feed estimates in Thursday’s supply and demand update. August was down $.65 at $122.07 and October was $.32 lower at $126.37.
Feeder cattle futures were lower on the mostly firm trade in corn. August was $.60 lower at $150.55 and September was down $.55 at $153.12.
Direct cash cattle markets were quiet, with not much buying or selling interest noted. Asking prices were holding around $121 to $122 on the Live basis and $196+ for Dressed. DTN reported bids at $117 Live in Kansas and $190 Dressed in Nebraska. Widespread business may wait until Thursday or Friday.
At Hub City Livestock in Aberdeen, South Dakota, feeder steers and heifers weighing 700 to 1100 pounds were $2 to $4 higher, with other weight classes not seeing enough numbers for an accurate test. Overall though, the market had very good buying demand with steers making up 52% of the run and 99% of the offering weighing more than 600 lbs. 914 to 999 pound feeder steers sold mostly at $125 to $127.50 with the outside exception of $144.10. 800 to 891 pound feeder heifers ranged from 120.50 to $132.
Boxed beef cutout values were mixed on light to moderate demand and moderate to heavy offerings. Choice was down $1.25 at $193.07 and Select was up $.20 at $186.05.
The estimated cattle slaughter of 124,000 head was down 1,000 on the week and 2,000 on the year.
Lean hogs were higher on short covering, oversold signals, and the discount to the cash index. That was despite mostly lower cash business and the pork carcass cutout value at midday being sharply lower. July was up $1.07 at $101.92 and August was $.52 higher at $95.70.
Cash hog margins have narrowed, but buyers are looking at continued tight market ready numbers. The National Direct barrow and gilt market was up $.22 with the weighted average at $99.09, the Eastern Cornbelt was down $.24 at $97.91, the Western Belt was $.72 higher at $100.09, and Iowa/Southern Minnesota was up $.38 at $100.33.
Butcher hogs at the terminal markets were $2 lower to $1 higher, with tops at $65 to $68. Missouri Direct butcher trade was steady to $1 lower at $92 to $96, with sows unchanged to $1 higher at $60 to $70. Illinois Direct sows were steady at $60 to $72.
The pork carcass cutout value was down $2.50 at $102.36 as post-holiday wholesale demand continues to decline. Except for bellies, all primals were lower.
The estimated hog slaughter of 407,000 head was down 17,000 from a week ago but up 12,000 from a year ago.
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