Tuesday's Closing Grain and Livestock Futures
May corn closed at $6.38 and 1/2, down 7 and 1/4 cents
May soybeans closed at $14.19 and 3/4, up 2 and 1/2 cents
May soybean meal closed at $411.70, up $1.70
May soybean oil closed at 48.57, down 5 points
May wheat closed at $6.97 and 1/2, down 4 and 3/4 cents
Apr. live cattle closed at $126.20, up 22 cents
Jun. lean hogs closed at $89.57, up 12 cents
Jun. crude oil closed at $89.18, down 1 cent
Jul. cotton closed at 85.10, down 105 points
May Class III milk closed at $18.62, down 30 cents
Apr. gold closed at $1,408.70, down $12.30
Dow Jones Industrial Average: 14,719.46, up 152.29 points
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Market News And ReCap
Soybeans were mostly weak on commercial buying in May and fund selling in the deferreds. May was up on the tight near term supply, and continued, if lessening, shipping delays out of South America. Dow Jones Newswires reports the cash soybean basis remains at historically high levels due to the tight supply and solid demand. The other months were down on a combination of an expected record crop out of South America and worries about avian influenza in China. Soybean meal was mixed, mirroring beans, and bean oil was down on spillover from beans and crude oil. China bought 392,000 tons of 2013/14 U.S. soybeans.
Corn was lower on fund and technical selling, along with the higher trade in the dollar. Corn also has a lot of concerns about export demand from China because of avian influenza. Only 4% of the crop is planted, compared to 16% on average, but longer term forecasts look better for planting. Some forecasts do show rain early next week, followed by the potential for a drier, warmer pattern in some key growing areas. Ethanol futures were lower.
The wheat complex was lower on technical and fund selling, in addition to the higher dollar. Chicago and Kansas City continue to largely ignore flooding concerns for soft red winter and freeze problems for hard red winter. Losses in Minneapolis were limited by the good demand for milling wheat and the spring planting delays. Russia’s Ag Ministry reports grain exports from July 1 to April 17 were 14.322 million tons, down 40% from the same period last marketing year, while according to Ukraine’s Ag Ministry, cumulative exports for the current marketing year are 20.5 million tons, a 19% increase.
The cash cattle market was untested on Tuesday afternoon with both bids and asking prices poorly defined. Some showlists are priced around 128.00 in the South and 204.00 to 205.00 plus in the North. Significant trade volume could be delayed until Thursday or Friday. The cattle slaughter totaled 123,000 head, 1,000 more than last week, but 2,000 less than 2012.
Boxed beef cutout values were steady to firm on moderate demand and light to moderate offerings. Choice boxed beef was up .63 at 191.41, and select was .11 higher at 183.78.
Chicago Mercantile Exchange live cattle contracts settled unchanged to 40 points higher. Early support across the complex faded slightly due to a lack of additional market direction and buyer orders seemed to dry up. But firmness through the rest of the livestock markets and expectations of improving beef demand kept prices positive through the end of the session. April live cattle settled .22 higher at 126.20, and June was unchanged at 120.82.
Feeder cattle ended the session 12 to 215 points higher. Futures remained strong in the summer contracts as the potential of firming beef demand through the spring and summer months seemed to have sparked widespread interest. With feeder cattle prices at the current levels, DTN says it is not hard to imagine that traders are viewing the market as oversold. April settled .12 higher at 137.50, and May up 1.00 at 139.60.
Feeder cattle receipts at Nebraska auctions this past week totaled 11,880 head. Compared to the previous week, steers weighing less than 600 pounds sold 4.00 to 600 higher, over 600 pounds were 2.00 to 5.00 lower. Heifers trended steady to 3.00 lower with the exception of 5 weights, 6.00 lower. Demand was good for light weight calves, moderate to good for cow/calf pairs and light to moderate for feedlot placements. Feeder steers averaging 830 pounds traded at 128.07 per hundredweight. 820 pound heifers brought 121.15.
Lean hogs settled 12 to 40 points higher as renewed buying support trickled into the futures market, following light support in wholesale pork values. This increase in meat prices seems to have been able to turn the table on commercial interest as moderate gains held. Session highs were seen earlier in the session, although buyer interest slowed toward the close. May settled .25 higher at 87.82, and June was up .12 at 89.57.
Barrows and gilts in the Iowa/Minnesota direct trade closed .33 lower at 79.93 on a carcass basis, the West was up .26 at 79.68, and the East was up .07 at 73.59. Missouri direct base carcass meat price was weak to steady from 72.00 to 77.00. Terminal hogs closed fully steady from 50.00 to 53.00 live basis.
The pork carcass cutout value was up .97 at 86.41 FOB plant, with only loins and ribs lower.
The cash hog market has opened the week with a positive combination of steady to higher country bids and light receipts, perhaps simultaneously suggesting packers are short bought and ready market hogs supplies are tightening.
Tuesday’s hog kill at 425,000 head is 6,000 greater than last week and 11,000 more than last year.
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