Tuesday's Closing Grain and Livestock Futures
Sep. corn closed at $5.45 and 1/4, up 9 cents
Aug. soybeans closed at $14.75 and 1/4, up 21 and 1/2 cents
Aug. soybean meal closed at $466.80, up $15.30
Aug. soybean oil closed at 45.71, down 13 points
Sep. wheat closed at $6.69 and 1/2, unchanged
Aug. live cattle closed at $122.12, down 32 cents
Aug. lean hogs closed at $96.30, up 75 cents
Aug. crude oil closed at $106.00, down 32 cents
Dec. cotton closed at 84.37, down 73 points
Aug. Class III milk closed at $18.08, up 43 cents
Aug. gold closed at $1,290.40, up $6.90
Dow Jones Industrial Average: 15,451.85, down 32.41 points
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Market News and ReCap
Soybeans were higher on technical and speculative buying. There’s rain in the forecast for parts of the eastern and northern Midwest and western areas are expected to be hot and dry. The crop’s developing slower than normal and in any event, there is a long way to go until this crop is made and not much room for error in this year’s crop size. Dow Jones Newswires does note the cash soybean basis was down Tuesday with end users covered, at least for the time being. Soybean meal was higher, following beans, and oil was mixed, mostly weak, on a lack of fresh demand.
Corn was higher on speculative and technical buying. Corn’s also watching the weather closely, particularly those forecasts for more hot and dry weather in the Western Cornbelt. The crop is developing slower than average and the crop condition rating was down over the past week, with most of that decline coming in key growing areas of the Western Belt. Ethanol futures were higher.
The wheat complex was steady to firm, following the lead of corn and soybeans. The soft red winter wheat harvest pace has slowed by recent wet weather in the eastern Midwest and hard red winter yields have been uninspiring. Spring wheat’s developing a little slowly and USDA’s crop condition rating was down 2% on the week. Even with the crop issues though, export demand remains largely limited with U.S. supplies roughly $100 per ton more expensive than Russia, keeping wheat’s upside limited. European wheat was flat. Japan is tendering for 112,176 tons of milling wheat (36,420 tons Canadian western red spring, 25,579 tons U.S. dark northern spring, 26,785 tons Australian standard white, and 23,392 tons U.S. hard red winter).
Cattle country was quiet on Tuesday afternoon with no bids reported. Buying interest may begin to take shape on Wednesday or Thursday but significant trade volume will probably be delayed until Friday once again. A few asking prices are around 122.00 in the South, and 196.00 plus in the North. The slaughter was estimated at 126,000 head, 5,000 more than last week, but 3,000 smaller than a year ago,
Boxed beef cutout values were steady to firm on light demand and offerings. Choice beef was down .04 at 190.66, and select was up .41 at 184.35.
Live cattle contracts on the Chicago Mercantile Exchange closed 20 points higher to 32 lower. Light losses held through the morning session with very little direction seen through the livestock market. The renewed focus on grain market support Tuesday seemed to have most of the traders focusing on overall cost of gains with little direction coming from the demand side of the market. August settled .32 lower at 122.12, and October was down .27 at 126.40
Feeder cattle ended the session mostly 10 to 27 points higher with only the August contract lower. Trade remained sluggish through the session. Most of the early trade was market positioning following Monday’s triple digit rally, the longer term direction in corn prices will dictate additional buyer interest through the week. August settled .10 lower at 152.55, and September was up .12 at 155.27.
Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 12,261 head. Compared to last week, feeder steers and heifers trended steady to 2.00 lower. Steer calves were 2.00 to 4.00 higher. Heifer calves were steady to 3.00 higher. The demand for feeder cattle was moderate with less demand than the previous week for the heavier weight cattle. The demand for calves was good. Feeder steers medium and large 1 weighing 678 pounds traded at an average of 152.70 per hundredweight. 677 pound heifer calves brought an average of 137.11.
Lean hogs settled 30 to 75 points higher. The strong support in the grain markets seemed to help to stabilize the market even though uncertainty is seen through the pork market fundamentals early in the week. Traders focused on near term support, with deferred contracts able to post modest gains. August settled .75 higher at 96.30, and October was up .65 at 85.35.
There was slow hog market activity with light demand on Tuesday. Barrows and gilts in the Iowa/Minnesota direct trade closed 1.11 higher at 98.83 on a carcass basis, the West was down .21 at 97.45, and the East was down 1.08 at 93.87. Missouri direct base carcass meat price closed steady from 90.00 to 95.00. Terminal hogs were steady to 1.00 to 2.00 lower from 62.00 to 70.00.
The pork carcass cutout value FOB plant closed .68 lower at 100.39 on a negotiated basis in the afternoon report.
Hog buyers have started the week with extreme apathy, apparently willing to bid lower regardless of success in movement numbers. At this time, Saturday kill plans simply do not exist.
Tuesday’s hog slaughter at 399,000 head is 1,000 less than last week, but the same as last year.
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