Friday's Closing Grain and Livestock Futures Prices.
Dec. corn closed at $4.54, down 2 and 3/4 cents
Nov. soybeans closed at $13.19 and 3/4, up 3 cents
Oct. soybean meal closed at $419.90, up $3.50
Oct. soybean oil closed at 41.51, down 28 points
Dec. wheat closed at $6.83, up 4 and 3/4 cents
Oct. live cattle closed at $128.25, up 55 cents
Oct. lean hogs closed at $92.92, up 12 cents
Nov. crude oil closed at $102.87, down 16 cents
Dec. cotton closed at 86.63, up 116 points
Oct. Class III milk closed at $17.96, down 4 cents
Oct. gold closed at $1,338.40, up $14.80
Dow Jones Industrial Average: 15,258.24, down 70.06 points
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Market News and Recap
Soybeans were mixed on old crop/new crop spread trade. The trade was getting ready for Monday’s USDA quarterly stocks update, which should show the supply as well below both last quarter and last year. Past that – beans are watching U.S. harvest activity and planting in South America. Soybean meal was mostly modestly higher and bean oil was weak. According to Reuters, farmers in Argentina are holding on to recently harvested soybeans as a hedge against inflation. Taiwan’s Breakfast Soybean Procurement Association bought 50,000 tons of soybeans from Brazil.
Corn was lower on profit taking and technical selling. Corn was also waiting for those USDA numbers out on Monday, expecting a big decline on both the quarter and the year. Anecdotal yields continue come in generally pretty good, but we won’t really know the size of the crop for quite some time. Ethanol futures were lower. China has kept it 2014 low tariff corn import quota at the same level as 2013, at 7.2 million tons. South Korea’s Major Feedmill Group bought 120,000 tons of corn.
The wheat complex was higher on short covering, technical buying, and the weak dollar. Quarterly wheat stocks should be below the previous quarter and a year ago, while the wheat production estimate is expected to be up slightly from USDA’s last guess. Unknown destinations bought a total of 121,600 tons of U.S. wheat (55,000 tons hard red winter, 38,800 tons soft white, and 27,800 tons hard red spring). DTN states Morocco is tendering for a total of 773,300 tons of wheat, 400,000 from the E.U. and 373,300 tons from the U.S., and China is in the market for an unspecified amount of wheat from Australia. China will leave its 2014 low tariff wheat import tariff at 9.6 million tons, unchanged from 2013. In sell-buy-sell trade, Japan bought 5,613 tons of food wheat and 3,000 tons of malting barley.
A light to moderate cattle trade developed in Nebraska on Friday afternoon on very good demand. USDA Mandatory reported dressed sales were 2.00 to 4.00 higher than last week at 200.00, with limited live sales at 126.00, about 2.00 higher. Some dressed sales in Kansas were also reported at 200.00. Trading was light in Iowa with live sales ranging from 125.00 to 126.00, and dressed sales from 198.00 to 200.00. Trading remained inactive in all other areas. The estimated weekly cattle slaughter at 632,000 head is 1,000 less than last week and 17,000 down from last year.
Boxed beef cutout values were lower on light demand and light to moderate offerings. Choice beef was down 97 at 192.63, and select was .90 lower at 176.15.
Chicago Mercantile Exchange live cattle contracts settled 10 to 55 points higher with the focus on potential cash market support and the outlook for higher boxed beef values at the end of the day. October settled .55 higher at 128.25 and December was up .50 at 132.07.
Feeder cattle ended the session unchanged to 25 points lower and traded mixed much of the session with very little direction in the complex. Traders had been looking for firmness in the cash market. October settled .25 lower at 164.12, and November was down .22 at 164.92.
Feeder cattle receipts at Missouri auctions this past week totaled 31,254 head. Compared to last week, feeders sold steady to 7.00 higher, several instances of 10.00 to 15.00 higher noted on high quality calves less than 450 pounds or drafts of high quality yearling steers from 650 to 800 pounds. There was some unevenness noted at some southern markets with pressure remaining on the calves. The farther north one traveled into corn country the more strength seemed to be found on all weights. Yearlings continue to set new records at many local auctions each week as continued promises of an abundant corn supply and a lack of cattle inventory exist. Feeder steers, medium and large 1 averaging 724 pounds traded at an average of 164.85 per hundredweight. 717 pound heifers averaged 150.85.
Lean hogs settled 2 to 45 points higher. Moderate buyer support overshadowed the previous pressure in the complex with traders placing most of their focus on the hogs and pigs report. There was uncertainty as to how much clarity the report will give the market based on the bias between long term and short term supply issues that was expected to be seem. October settled .12 higher at 92.92, and December was up .40 at 88.12.
The pork carcass value FOB plant was down .30 at 102.06 on a negotiated basis. Only loins and bellies were modestly higher.
Barrows and gilts in the Iowa/Minnesota direct trade closed .79 higher at 93.42 on a carcass basis, the West was down .22 at 92.26, and in the East the market was .66 lower at 89.68. Missouri direct base carcass meat price closed steady from 86.00 to 89.00. Terminal hogs were steady to .50 lower from 61.00 to 70.00 live.
The hogs and pigs report on Friday afternoon revealed a total inventory of 68.4 million head on September 1. This was slightly higher than last September and up 3 percent from June 2013. The breeding inventory was up slightly. Market hog numbers at 65.2 million head, was up slightly from last year, and 3 percent higher than last quarter.
The weekly hog slaughter was estimated at 2,190,000 head, 10,000 more than last week, but 151,000 less than last year.
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