Wednesday’s Closing Grain and Livestock Futures
Mar. corn closed at $3.81, down 4 and 3/4 cents
Jan. soybeans closed at $9.92 and 1/2, down 7 and 1/2 cents
Jan. soybean meal closed at $328.90, down $20.80
Jan. soybean oil closed at 32.57, up 18 points
Mar. wheat closed at $5.37 and 3/4, down 10 and 1/4 cents
Feb. live cattle closed at $155.75, down $1.70
Feb. lean hogs closed at $76.02, up 85 cents
Feb. crude oil closed at $48.48, up $2.59
Mar. cotton closed at 58.98, down 117 points
Feb. Class III milk closed at $14.36, down 71 cents
Feb. gold closed at $1,234.50, up 10 cents
Dow Jones Industrial Average: 17,427.09, down 186.59 points
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Market News Recap
Soybeans were mostly higher on spread trade and technical buying, with only lightly traded January in the red. There are some areas of concern in Brazil, but overall, South American weather looks good for development. Demand remains strong as unknown bought 202,750 tons of U.S. beans, with 102,750 tons for this marketing year and 100,000 tons for next marketing year. Soybean meal looked a lot like beans, January down, all other months up, and bean oil was firm. The Rosario Grain Exchange projects Argentina’s soybean crop at 54.5 million tons, down from the last guess due to lower planted area.
Corn was lower on fund and technical selling. Contracts hung around five week lows, keeping an eye on South American growing weather. Taiwan did buy 125,000 tons of U.S. corn for delivery this marketing year and demand remains solid, but corn’s also looking at a fairly large available supply right now. Ethanol futures were lower. For the week ending January 9, ethanol production averaged 978,000 barrels per day, up 3% on the week and nearly 13% on the year. Ethanol stocks are 20.229 million barrels, 26% more than a year ago. The Rosario Grain Exchange sees Argentina’s corn crop at 22.4 million tons with planting 90% complete.
The wheat complex was lower on fund and technical selling, despite some lower trade in the dollar. The trade’s continuing to digest Monday’s USDA numbers which once again just confirmed the bearish fundamentals. Ukraine’s government raised its export projection, but will still likely limit wheat sales for the next couple of months. In Russia, wheat conditions are in poorer shape than this time last year due to a dry fall in some key growing areas.
Except for a few scattered bids in the cattle at 164.00 in Kansas and Texas and 260.00 to 265.00 in Iowa cattle country was very quiet on Wednesday. Asking prices are still somewhat hard to pin down. A few showlists are priced around 168.00 plus in the South and 268.00 plus in the North. The kill totaled 104,000 head, even with last week, but 13,000 smaller than a year ago.
Boxed beef cutout values were higher on fairly good demand and light to moderate offerings. Choice beef was 2.18 higher at 263.61, and select was up 2.00 at 253.68.
Live cattle contracts on the Chicago Mercantile Exchange settled 80 to 207 points lower after trading mixed much of the session. Pressure in the market was associated with the lower cash trade on Tuesday. But any support that was seen in the market earlier in the day evaporated and the market shifted lower despite sharply higher boxed beef values at midday. The triple digit losses in both the live and feeder pits was due in part to long liquidation, technical selling and outside markets. February settled 1.07 lower at 155.75, and April was down 2.07 at 154.32.
Feeder cattle ended 75 to 107 points lower. The market saw triple gains on the firmness in boxed beef values and expectations of growing demand. But the gains eroded, and that could leave the market open for additional end of the week volatility. January settled 1.40 lower at 220.15, and March was down .82 at 210.10.
Feeder cattle receipts at the Ozark’s Regional Stockyards at West Plains, Missouri totaled 2959 head on Tuesday. Compared to last week, feeder steers traded 2.00 to 6.00 lower with the exception of the 5 to 650 weights which were steady to 5.00 higher. Heifers traded 2.00 to 4.00 lower with the exception of those weighing 400 to 550 pounds and they were steady to 3.00 higher. Demand was good on a moderate supply. Feeder steers medium and large 1 averaging 505 pounds averaged 299.96 per hundredweight. 462 pound heifers traded at an average of 277.58.
Lean hogs settled 85 to 195 points higher as firm gains developed through the market near midday… Early morning short covering gave way to moderate buyer support stepping back into the market. The lack of direction in the cash market seemed to have little impact on midweek futures activity. February settled .85 higher at 76.02, and April was up 1.50 at 78.00.
There was moderate hog market activity with moderate demand on Wednesday afternoon. Barrows and gilts in the Iowa/Minnesota direct trade closed .26 lower at 71.61 weighted average on a carcass basis, the West was down .34 at 71.44, and the East was .04 lower at 70.78. Missouri direct base carcass meat price closed steady to 1.00 lower from 62.00 to 66,00, Midwest hogs on a live basis were steady to 1.00 lower from 46.00 to 55.00.
The pork carcass cutout value was .05 lower FOB plant at 84.31.
The combination of limited country receipts and sloppy cash hog bids on one hand and large daily kills, averaging close to 430,000 head on the other suggests that packers have plenty of live inventory in tow, at least through the first three weeks of January.
Wednesday’s hog slaughter at 433,000 head is 20,000 more than last week, and 3,000 greater than last year.
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