Friday's Closing Grain & Livestock Futures Prices
Jul. corn closed at $5.07 and 1/2, down 9 cents
Jul. soybeans closed at $14.87, up 17 and 1/2 cents
Jul. soybean meal closed at $487.30, up $6.60
Jul. soybean oil closed at 41.18, up 6 points
Jul. wheat closed at $7.22 and 1/2, down 12 and 3/4 cents
Jun. live cattle closed at $138.05, up 12 cents
Jun. lean hogs closed at $120.17, up 2 cents
Jun. crude oil closed at $99.99, down 27 cents
Jul. cotton closed at 92.36, down 69 points
May Class III milk closed at $22.71, down 13 cents
Jun. gold closed at $1,287.60, down 10 cents
Dow Jones Industrial Average: 16,583.34, up 32.37 points
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For Full USDA May WASDE Report Coverage click http://www.farms.com/news/usda-released-wasde-report-full-coverage-may-09-2014-76177.aspx
Market News Review
Soybeans were higher on fund and commercial buying. Old crop ending stocks were down slightly on the month at 130 million bushels with increase in crush and exports cancelling out bigger imports. New crop stocks are seen at 330 million bushels, with production at 3.6 billion. World soybean numbers were nominally bearish. Soybean meal and oil followed beans higher, but meal outgained oil on the adjustment of product spreads. According to Reuters, up to 1.2 million tons of Brazilian soybeans are headed for U.S. crushers. Crush margins in China are expected to remain negative, but slightly improved, over the near term.
Corn was lower on fund and commercial selling. Old crop ending stocks dropped more than 200 million bushels to 1.15 billion thanks to a bigger export estimate. New crop production is seen at 13.9 billion bushels, with ending stocks at 1.73 billion. With this set of numbers out of the way, the trade’s going back to watching planting and development weather. Ethanol futures were mixed. The global corn numbers were also bearish.
The wheat complex was lower on fund and technical selling. Winter wheat production is expected to be down 9% on the year at 1.4 billion bushels. Old crop ending stocks were unchanged and new crop is pegged at 540 million bushels. The world wheat numbers were also bearish. Between now and the next set of USDA numbers, wheat is going to focus on political tensions in the Black Sea region, weather in the Southern Plains, and the spring planting pace in the Northern Plains. The U.N. bought 17,000 tons of wheat from Ukraine for Djibouti and 7,500 tons of Ukrainian wheat for North Korea.
USDA Mandatory reported a light to moderate cattle trade in Kansas on moderate demand on Friday. Compared to last week, live sales were steady at 146.00. Trading was light to moderate in Western Nebraska on moderate demand. Compared to last week, early live sales at 148.00 to 149.00. Trading was slow in other major feeding regions, but buyer inquiry was increasing. The weekly cattle slaughter was estimated at 597,000 head, 11,000 less than last week, and down 32,000 from last year.
Boxed beef cutout values were lower on choice and weak on select on light to moderate demand and offerings. Choice beef was down 2.39 at 223.26, and select was .30 lower at 212.21.
Live cattle contracts settled 12 to 107 points higher on the Chicago Mercantile Exchange. Light to moderate buyer support slowly redeveloped across the live cattle complex following pressure in corn futures. The lack of consistency in beef values did not gain much bearish attention late in the week as traders continued to look for the opportunity to square positions and an attempt to focus on stability in the cash and meat prices. June settled .12 higher at 138.05 and August was up .60 at 138.20.
Feeder cattle ended 87 to 110 points higher as buyer support trickled back into the complex late in the session. The support in the August and September contracts does not accurately represent market moves due to overall light volume in the complex late in the week. The pressure in corn markets following the USDA supply and demand report created some renewed support to develop. May settled 1.07 higher at 184.57, and August was up 1.10 at 191.37.
Feeder cattle receipts at Missouri auctions totaled 28,549 head this week. Compared to last week, feeder steers and heifers sold steady to 5.00 higher with many calves weighing less than 500 pounds trending 5.00 to 15.00 higher. The supply was moderate and generally made up mostly of calves. Demand was good to very good. Feeder steers medium and large 1 averaging 572 pounds brought 220.83 per hundredweight. 571 pound heifers averaged 195.89.
Lean hogs settled 112 points higher to 30 lower. Contracts were extremely inconsistent through the morning trade. Trade remained light and created even more end of the week volatility across the complex. May settled .22 lower at 114.67 and June was up .02 at 120.17.
Barrows and gilts in the Iowa/Minnesota direct trade closed 3.34 lower at 108.27 weighted average on a carcass basis, the West was down 3.25 at 108.20, and the East was not reported due to confidentiality. Missouri direct base carcass meat price was steady from 97.00 to 99.00. Barrows and gilts at Midwest markets on a live basis were steady to an instance of 2.00 lower from 73.00 to 84.00.
The pork carcass value was down .35 FOB plant at 111.73. All cuts except ribs and loins were lower.
DTN reports they are hearing a good deal of trade talk that hog buyers will experience a tougher time gathering numbers in the second half of May once contract supplies have been more spent and seasonal numbers begin to shrink more aggressively.
The weekly hog slaughter was estimated at 2,016,000 head, 3,000 less than last week and down 68,000 from last year.
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