Thursday's Closing Grain and Livestock Futures
May corn closed at $4.78 and 1/2, down 9 and 1/4 cents
May soybeans closed at $14.33 and 3/4, up 2 and 1/2 cents
May soybean meal closed at $466.50, up $4.50
May soybean oil closed at 41.31, down 79 points
May wheat closed at $7.03 and 3/4, down 12 cents
Apr. live cattle closed at $144.42, down $1.70
Apr. lean hogs closed at $124.80, up 65 cents
Apr. crude oil closed at $99.43, down 94 cents
May cotton closed at 92.18, down 44 points
Apr. Class III milk closed at $23.04, down 5 cents
Apr. gold closed at $1,330.50, down $10.80
Dow Jones Industrial Average: 16,331.05, up 108.88 points
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Market News Update:
Soybeans were mostly lower on profit taking and technical selling. Still, the weekly export numbers were strong, especially new crop, and the near term supply remains tight, which did support March. The trade’s watching South America and harvest delays in some key growing areas. China did buy 120,000 tons of 2014/15 U.S. beans. Soybean meal was higher and bean oil was lower on the adjustment of product spreads. There are more reports of Brazilian soybeans being switched from Chinese to U.S. origin.
Corn was lower on fund and technical selling. Weekly export numbers were bullish and domestic demand is also solid thanks to strong ethanol and feed use, but there is just a lot of corn on the market. USDA’s quarterly stocks report is expected to reflect that and there’s a good chance the prospective planting estimate could be around 90 million acres. Ethanol futures were higher. Strategie Grains projects 2014/15 European Union corn production at 65.2 million tons.
The wheat complex was lower on profit taking after Wednesday’s run to ten month highs, along with the higher dollar. Weekly export numbers were bearish and export problems from Ukraine are looking less and less likely. The trade’s also watching weather around the U.S. Plains. This weekend is expected to be cold around the Southern Plains, but there is a chance for some much needed precipitation next week. Strategie Grains estimates 2014/15 soft wheat production at 137.7 million tons. Tunisia bought 34,000 tons of optional origin durum.
Cattle country turned quiet Thursday afternoon following very unusual market developments earlier in the day. It is rare to see cash and futures markets moving sharply in opposite directions, but that is exactly what transpired in morning trade. Light trade volume developed in Kansas and Texas at mostly 150.00, 2.00 higher than last week. At the same time live cattle futures closed with triple digit losses. Such action was enough to confuse both sides and probably explains why action Thursday afternoon was quite limited. Showlists remain priced around 151.00 plus in the South and 245.00 plus in the North.
The cattle slaughter was estimated at 111,000 head, 1,000 below last week and 9,000 smaller than last year.
Boxed beef cutout values are lower on light demand and light to moderate offerings. Choice boxed beef was 1.80 lower at 241.57 and select was down 1.53 at 234.77.
Chicago Mercantile Exchange live cattle contracts rallied early with several contracts scoring new highs. But a long flood of liquidation and commercial selling surfaced near midsession, causing the board to reverse sharply lower and suffer significant technical damage according to DTN. April settled 1.70 lower at 144.42, and June was down 2.07 at 136.20.
Feeder cattle ended the session 77 to 237 points in the red on the turnaround in the live cattle futures market. Pressure in the grains did very little to draw support into the feeder futures as traders closely followed the shifts in the live cattle contracts. March feeders settled .77 lower at 173.62 and April was down 2.00 at 174.65.
Feeder cattle receipts at the Springfield, Missouri Livestock Marketing Center totaled 1999 head on Wednesday. Demand was good for a moderate supply. There were several fleshy, fall calves along with wean-vaccinated calves and yearlings. Feeder steers medium and large 1 averaging 573 pounds traded at 211.63 per hundredweight. 564 pound heifers averaged 184.92.
Lean hogs settled 2.75 higher to 1.45 lower in a wild ride, as futures contracts traded in a wide range. Uncertainty in the cash market direction and traders trying to peg when supply shortness will have the greatest impact caused significant volatility through the market. The fall and winter futures saw the triple digit gains. April hogs settled .65 higher at 124.90, and June was down 1.45 at 130.80. October saw the greatest gain, up 2.75 at 103.00.
Barrows and gilts in the Iowa/Minnesota direct trade closed 3.09 higher with a weighted average of 125.79 on a carcass basis. Live negotiated prices were 2.27 higher from 86.00 to 97.75. Western hogs were up 3.05 at 125.73 and in the East was 1.94 higher at 117.00. Missouri direct base carcass meat price was steady from 111.00 to 115.00. Terminal markets were steady to 3.00 higher from 82.00 to 87.00 live.
The pork carcass cutout value was .63 higher at 131.26 FOB plant.
Iowa barrows and gilts averaged 283 pounds last week, .9 pound heavier than the prior week and 6 pounds larger than the same period in 2013.
The Thursday hog slaughter was estimated at 413,000 head, 7,000 greater than last week, but 13,000 head less than 2013.
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