Wednesday's Closing Grain and Livestock Futures
Dec. corn closed at $4.54 and 3/4, up 6 cents
Nov. soybeans closed at $13.21 and 3/4, up 9 and 1/4 cents
Oct. soybean meal closed at $418.60, up $4.50
Oct. soybean oil closed at 41.82, down 2 points
Dec. wheat closed at $6.70 and 1/2, up 12 and 1/4 cents
Oct. live cattle closed at $127.55, up 22 cents
Oct. lean hogs closed at $93.70, up $1.20
Nov. crude oil closed at $102.66, down 47 cents
Dec. cotton closed at 84.65, up 27 points
Oct. Class III milk closed at $17.92, down 12 cents
Oct. gold closed at $1,335.90, up $19.90
Dow Jones Industrial Average: 15,273.26, down 61.33 points
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Market News and ReCap
Soybeans were higher on commercial and fund buying. The trade’s watching U.S. harvest activity and the planting pace around key growing areas of South America. Quarterly stocks numbers out Monday should reflect the very tight near term supply. Unknown destinations bought 140,000 tons of 2013/14 U.S. beans. Bean meal was mostly higher and bean oil was steady to lower on light adjustment of product spreads. USDA’s weekly export sales report is out Thursday at 8:30 AM Eastern/7:30 AM Central. Soybeans are pegged at 1 million to 3.1 million tons, meal is seen at 0 to 210,000 tons, and oil is placed at 0 to 40,000 tons.
Corn was higher on fund buying and spillover from wheat and the dollar. Corn is also watching the harvest and getting ready for the quarterly stocks numbers on Monday. Harvest pressure continues to press the cash basis, with the national average cash price now under the December. Ethanol futures were higher. Dow Jones Newswires reports Manitoba, Canada’s corn harvest may not start until mid-October in many areas due to the slow start to the season. Weekly U.S. corn sales are expected to be between 400,000 and 700,000 tons.
The wheat complex was higher on short covering, fund buying, and the lower dollar. The complex is watching slow planting in Ukraine and Russia, along with solid export demand, high domestic prices in China, and a recent freeze in wheat growing areas of Argentina. Wheat production numbers are also due out on Monday. The Canadian Grain Commission, via Dow Jones Newswires, states early yield data is pointing to lower than average protein yields. In sell-buy-sell trade, Japan is in the market for 180,000 tons of feed wheat and 200,000 tons of feed barley. Weekly U.S. wheat sales are estimated at 550,000 to 850,000 tons.
Just a few bids are reported on the cattle at 123.00 in Kansas and Texas. Cattle feeders were expected to see light bidding interest today at 123.00 in the South and 192.00 to 193.00 in the North. It will be surprising if buyers’ move even closer to higher asking prices of around 126.00 plus in the South and 198.00 to 200.00 in the North. That kind of seriousness looks to be delayed until Thursday or Friday. The estimated slaughter at 123,000 head is even with last week and 3,000 more than 2012.
Boxed beef cutout values ended the day steady to firm on light to moderate demand and offerings. Choice beef was .18 lower at 193.59, and select was .42 higher at 177.47.
Live cattle contracts on the Chicago Mercantile Exchange settled 5 to 25 points higher. Light support was evident through the live cattle contracts. Gains in the outside markets attracted light buyer interest through the live pit. The trading range remained very narrow and saw only limited movement through the close. October settled .22 higher at 127.55, and December was up .05 at 131.27.
Feeder cattle ended the session mostly 27 to 85 points lower with only the spot September contract higher. The renewed support in corn futures on spooked feeder cattle traders on Wednesday, according to DTN analysts. This led to most contracts posting moderate losses. Trade volume was sluggish. September settled .72 higher at 158.67, and October was down .85 at 162.92.
Feeder cattle receipts at the Ozarks Regional Stockyards at West Plains, Missouri on Tuesday totaled 3065 head. Compared to last week, feeder steers and heifers weighing less than 400 pounds were 5.00 to 10.00 higher. Steers 4 to 6 weights were mixed from 3.00 lower to 5.00 higher, while 600 pounds and heavier trending 3.00 to 6.00 higher. Feeder heifers were mixed from 2.00 lower to 2.00 higher. The supply and demand was moderate. Feeder steers, medium and large 1 averaging 529 pounds traded at 177.76 per hundredweight. 525 pound heifers brought 163.79.
Lean hogs ended the session mixed from 20 lower to 120 points higher. Strong buyer support redeveloped in the nearby contracts with the October contract holding on to triple digit gains. But momentum shifted through the complex with traders focusing on the inability to draw additional buyer interest into the deferred contracts. October settled 1.20 higher at 93.70, and December was up .52 at 88.60.
There was slow hog market activity with light demand on Wednesday. Barrows and gilts in the Iowa/Minnesota direct trade closed 1.19 lower with a weighted average of 92.56 on a carcass basis, the West was down 1.12 at 92.42, and Eastern barrows and gilts were .75 lower at 89.99. Missouri direct trade base carcass meat price closed steady to 2.00 lower from 82.00 to 85.00. Terminal hogs were steady with an instance of 2.00 higher from 62.00 to 72.00 live.
The pork cutout value was up 1.13 at 101.27 FOB plant on a negotiated basis in the afternoon report.
Live and dressed hog weights are gradually working higher and should thrive in the weeks ahead as the risk of any heat-related weight reductions diminishes and producers are able to feed hogs higher quality corn.
Wednesday’s hog slaughter was estimated at 433,000 head, 1,000 less than last week and down 2,000 head from last year.
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