Monday's Closing Grain and Livestock Futures
Sep. corn closed at $5.36 and 1/4, down 9 and 1/4 cents
Aug. soybeans closed at $14.53 and 3/4, up 24 and 3/4 cents
Aug. soybean meal closed at $451.50, up $8.60
Aug. soybean oil closed at 45.84, down 38 points
Sep. wheat closed at $6.69 and 1/2, down 11 and 1/2 cents
Aug. live cattle closed at $122.45, up 60 cents
Jul. lean hogs closed at $102.30, up 20 cents
Aug. crude oil closed at $105.32, up 37 cents
Oct. cotton closed at 85.35, up 22 points
Aug. Class III milk closed at $17.65, unchanged
Aug. gold closed at $1,283.50, up $5.90
Dow Jones Industrial Average: 15,484.26, up 19.96 points
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Market News and ReCap
Soybeans were higher on technical and commercial buying. The near term supply remains very tight and the monthly NOPA crush number was larger than expected. Near term crop weather looks good, but there is a chance for hot, dry conditions later on in the growing season. USDA reports 26% of soybeans are blooming as of Sunday, compared to 63% a year ago and the five year average of 40%, with 65% of the crop rated good to excellent, down 2% on the week. Soybean meal was higher and bean oil was lower on the adjustment of product spreads.
Corn was lower on speculative and technical selling, along with spillover from wheat. Development remains slower than average, but is expected to catch up quickly with good weather expected over the near term. USDA reports 16% of the crop is silking, compared to 67% last year and 35% on average, with 66% of the crop in good to excellent shape, down 2% from a week ago. Unknown destinations bought 120,000 tons of 2013/14 U.S. corn. Ethanol futures were higher.
The wheat complex was lower on technical and speculative selling, along with the higher dollar. Chicago and Kansas City saw continued harvest pressure and Minneapolis is focused on spring development weather. For winter wheat, USDA states 67% is harvested, compared to 81% a year ago and 71% on average, while 71% of spring wheat has headed, compared to 93% last year and 73% on average, with 70% of the crop in good to excellent condition, down 2% from last week. November European wheat was down sharply.
Cattle country was quiet on Monday afternoon after the distribution of the new showlists, and significant business is not expected until the second half of the week. The new showlists are generally smaller with decreases in Texas and Nebraska offsetting smaller increases in Kansas and Colorado. Early asking prices are around 122.00 plus in the South and 195.00 plus in the North. The Monday cattle kill at 122,000 head was even with last week, but 3,000 less than last year.
Boxed beef cutout values were weak on the choice and firm on select on light demand and light to moderate offerings. Choice beef was down .83 at 190.70, and select was up .27 at 183.94.
Live cattle contracts on the Chicago Mercantile Exchange settled 50 to 77 points higher as they ignored signs of lackluster meat demand. Part of the support stemmed from spillover buying from the feeder pit. Other positives included short covering and technical bullishness. August settled .60 higher at 122.45 and October was at 126.67 also up .60.
Feeder cattle finished the session 155 to 252 points higher and traded at the highest price levels seen since early April. Early week bullishness appeared to be fueled in part by further weakness in new crop corn and ideas of tightening feeder supplies through the end of the year. August settled 2.52 higher at 152.65, and September was up 2.42 at 155.15.
Feeder cattle receipts at the Joplin Regional Stockyards on Monday totaled 5500 head. Compared to last week all classes of feeder cattle and calves opened 2.00 to 4.00 higher. Buyers were especially aggressive for early sales of 600 to 900 pound yearling steers. Feeder steers medium and large 1 weighing 700 to 800 pounds traded from 138.00 to 148.00. Feeder heifers weighing from 7 to 800 pounds brought 128.00 to 141.00.
Lean hogs settled 10 to 65 points higher defying the implications of lower cash and product quotes. Floor sources credit the firmness to short covering and spillover buying from the cattle pits. July expired at noon at 102.30 up .20 and August settled at 95.55 up .65.
Barrows and gilts in the Iowa/Minnesota direct trade closed 2.44 lower at 97.81 on a carcass basis, the West was 2.50 lower at 97.74, and the East was down 1.06 at 94.95. Missouri direct base carcass meat price closed 1.00 to 2.00 lower from 90.00 to 95.00. Terminal hogs were 1.00 lower to 1.00 to 2.00 higher from 63.00 to 70.00.
The pork carcass cutout value closed .41 lower at 101.07 FOB plant in the afternoon report.
While pork processors still enjoy gross margins significantly above 2012 and the three-year average, they have plummeted $12.61, according to the DTN model per head just over the last two weeks. Understandably orders may soon be given to slow chain speed if carcass value continues to fail.
The Monday hog kill was estimated at 401,000 head, 3,000 less than last week, but 24,000 more than last year.