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Demand Drives Corn Futures Prices Higher

Thursday's Closing Grain and Livestock Futures
May corn closed at $4.92, up 7 and 1/2 cents
May soybeans closed at $14.36 and 1/2, down 3 and 1/2 cents
May soybean meal closed at $470.50, up $1.40
May soybean oil closed at 40.43, down 30 points
May wheat closed at $7.10 and 1/2, up 13 and 3/4 cents
Apr. live cattle closed at $146.47, up 67 cents
Apr. lean hogs closed at $125.47, up $3.00
May crude oil closed at $101.28, up $1.02
May cotton closed at 92.56, up 90 points
Apr. Class III milk closed at $24.03, up 52 cents
Apr. gold closed at $1,294.70, down $8.70
Dow Jones Industrial Average: 16,264.23, down 4.76 points

For additional futures prices and charts click http://www.farms.com/markets

Market News Update:

Soybeans were lower on profit taking and technical selling. The big feature continues to be position squaring ahead of next week’s USDA numbers. Monday, quarterly stocks should be bullish, but planting numbers are expected to be bearish. Past that – the weekly export numbers were good, but not great, with sales inside estimates and another strong week for shipments. Soybean meal was higher and bean oil was lower on the adjustment of product spreads.

Corn hit new six month highs on commercial and fund buying. Weekly export numbers were solid with Egypt and Mexico the big buyers, and shipments were above what’s needed to meet USDA projections. The reports Monday should show strong demand and at least some decline in acreage. Widespread planting has yet to get underway, but there are some early delays in the South. Ethanol futures were mostly lower.

The wheat complex was higher on speculative and fund buying. There’s been more rain in some winter wheat growing areas, but most areas, especially the Southern Plains, need a lot more. Monday, quarterly wheat stocks should be down on the year and acreage is expected to be slightly under 2013. The trade’s also watching any potential planting delays in the Northern Plains. Russia’s Ag Ministry reports spring grain planting is ahead of average, but Ukraine’s Ministry expects reduced acreage due to high fuel and fertilizer costs, along with a lack of financing.

 

Most weeks we are still waiting for cattle to trade and sometimes it is late on Friday before significant trade develops. This week was different with short bought packers completing most of their procurement chores on Tuesday and Wednesday. Cattle country is quiet with trade essentially wrapped up for the week. Unsold cattle remaining on showlists are priced around 152.00 to 153.00 in the South and 246.00 plus in the North. Cattle slaughter was estimated at 115,000 head, 4,000 more than last week, but 6,000 less than the same period last year.

Boxed beef cutout values were lower on light demand and light to moderate offerings. Choice beef was down 1.16 at 130.75, and select was 2.10 lower at 231.21.

Live cattle contracts on the Chicago Mercantile Exchange settled 20 to 90 points higher on support from the limit higher moves in the lean hog pit. Even though moderate to firm gains were seen in the cattle complex, there is still some concern about sustaining fundamental support, especially after beef values continue to erode through the last couple of trading days. April settled .67 higher at 146.47, and June was up .90 at 138.52.

Feeder cattle ended the day 60 to 87 points in the black. It started out as a choppy market in feeder contracts but developed into firming follow through support. There was a lot of momentum behind the renewed gains in lean hog futures and that helped to allow buyers to feel slightly more aggressive in all livestock markets at least for the moment. April settled .87 higher at 179.50, and May was .75 higher at 179.87.

Feeder cattle receipts at the Huss Platte Valley Auction in Nebraska totaled 4200 head. Compared to two weeks ago, steers under 850 pounds trended 5.00 to 10.00 higher, over 850 pounds steady to 4.00 higher. Heifers weighing less than 750 pounds traded 8.00 to 10.00 higher, over 750 pounds 3.00 to 6.00 higher. Demand was very good from a very large crowd with some buyers from Kansas and Iowa. Feeder steers medium and large 1 averaging 765 pounds brought 184.01 per hundredweight. 779 pound heifers traded at 165.65.

Lean hogs settled limit up in the nearby contracts. Traders aggressively stepped back into the market focused on the potential to draw additional support into the cash markets and renewed concern the early week pressure may have been overdone. The concern about gaining access to hogs over the next couple of months continues to be a major worry for the entire industry. April settled 3.00 higher at 125.47, and June was also up the limit at 129.30.

Barrows and gilts in the Iowa/Minnesota direct trade were 3.03 higher, the West was up 3.92 with a weighted average of 129.82 on a carcass basis in both regions. Eastern hogs were .02 higher at 123.74. Missouri direct base carcass meat price closed steady from 117.00 to 119.00. Terminal hogs closed steady to 2.00 higher from 82.00 to 88.00.

The pork carcass value was down 1.16 at 130.75 FOB plant

Iowa market hogs last week averaged 283.9 pounds, 0.9 pounds larger than the previous week and as much 8.2 pounds heavier than 2013.

Thursday’s hog kill was estimated at 407,000 head 6,000 less than last week and down 23,000 from last year.

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