Thursday's Closing Grain & Livestock Futures Prices
Jul. corn closed at $4.84 and 1/4, down 11 and 1/4 cents
Jul. soybeans closed at $14.70 and 1/4, down 16 and 1/2 cents
Jul. soybean meal closed at $481.40, down $5.10
Jul. soybean oil closed at 41.04, down 34 points
Jul. wheat closed at $6.78 and 1/4, down 12 cents
Jun. live cattle closed at $137.40, down 5 cents
Jun. lean hogs closed at $119.42, down $1.15
Jun. crude oil closed at $101.50, down 87 cents
Jul. cotton closed at 90.36, down 34 points
Jun. Class III milk closed at $20.57, down 37 cents
Jun. gold closed at $1,293.60, down $12.30
Dow Jones Industrial Average: 16,446.81, down 167.16 points
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Market News Review
Soybeans were lower on fund and commercial selling. Weekly export numbers were solid, sales have passed USDA’s estimate for the marketing year, and China bought 120,000 tons of new crop U.S. beans. That said, new crop fundamentals are bearish, with the trade expecting a big crop. Also, while the NOPA member crush for April came out pretty much as expected at 132.667 million bushels, the total was down sharply on the month. Still, it was a five year high for the month and is more than likely indicative of the tight supply. China projects domestic soybean production at 11.5 million tons, with imports at 3 million.
Corn was lower on fund and technical selling. There’s been a lot of cool, wet weather this week, but planting conditions next week should be better. Additionally, the current market sentiment is that “rain makes grain”. Weekly export sales were at the low end of pre-report estimates and it was a slow week for the shipments. Mexico did buy 104,400 tons of old crop U.S. corn. Ethanol futures were mixed. China estimates domestic corn production at 222.1 million tons, up 2% on the year.
The wheat complex was lower on fund and speculative selling. Weekly export numbers were bearish and demand has definitely slowed down after the recent price increase. Additionally, world crop conditions generally look good. There’s some rain in the forecast for the Southern Plains, but A) it’s expected to be mainly in eastern and central areas of the region, which have seen rain recently, and B) drought conditions will likely persist for a while. The Northern Plains could see better planting weather. China expects domestic wheat production to be 122.6 million tons, 1% more than last year. Jordan bought 100,000 tons of Romanian milling wheat. Japan picked up 57,100 tons of U.S. milling wheat and 40,700 tons of Australian standard white, along with a sell-buy-sell purchase of 36,000 tons of optional origin feed wheat.
USDA Mandatory reported cattle trading was light to moderate in Central and Eastern Nebraska on Thursday on light demand. Compared to last week, early live sales were 2.00 to 3.00 lower at 146.00 to 147.00 and dressed sales were 2.00 lower at 234.00 to 235.00, mostly 234.00. Trading was light in Iowa with a few live sales at 147.00 to 147.50 and dressed sales from 234.00 to 235.00. DTN reported a light trade in the South at 145.00, a $1.00 lower than last week. The kill was estimated at 118,000 head, 1,000 below last week, and 8,000 smaller than last year.
Boxed beef cutout values are steady on light to moderate demand and offerings. Choice boxed beef is up .13 at 225.21, and select is .01 higher at 215.47.
Live cattle contracts on the Chicago Mercantile Exchange settled 5 to 102 points lower. Pressure developed across the live cattle market as traders focused on weakness in feeder cattle developing despite the initial buyer support that entered the market. Traders looked for additional market direction from cash markets, but the lack of support in wholesale beef values continued to create pressure throughout the complex. June settled .05 lower at 137.40 and August was down .57 at 137.82.
Feeder cattle settled 75 higher to 80 points lower, with only the May and September contracts able to hang on to gains. Trade activity was light. Given the aggressive support over the past week, the losses seen on Thursday in the cattle are likely nothing more than position taking, and will most likely not create any technical market shifts. May was up .75 at 186.15, and August was down .02 at 192.42.
Feeder cattle receipts at the Springfield, Missouri Livestock Marketing Center totaled 1782 head on Wednesday. Compared to last week, steer and heifer calves were 2.00 to 6.00 higher. A limited test of yearlings sold with a higher undertone. Holsteins were 5.00 to 15.00 higher compared to a light test last week. The demand was good on a moderate supply. Feeder steers medium and large 1 weighing 520 pounds averaged 230.63 per hundredweight. 565 pound heifers averaged 190.16 at Springfield.
Lean hogs settled 57 points higher to 155 lower. Strong pressure held through the nearby contracts even though both June and July contracts backed away from session lows set early in the day. The lack of follow-through buyer interest continued to keep prices bouncing higher and lower in a narrow to moderate trading range. The volatility in the market could keep prices in the current range over an extended period of time as very little new information is available on either the supply or demand side of the market. June settled 1.15 lower at 119.42. July was down 1.55 at 125.35.
Barrows and gilts in the Iowa/Minnesota direct trade closed .57 higher at 109.88 weighted average on a carcass basis, the West was up .49 at 109.70, and Eastern hogs at 104.60 had no price comparison. Missouri direct base carcass meat price was steady from 97.00 to 100.00. Barrows and gilts in the Midwest were fully steady on a live basis from 72.00 to 80.00.
The pork carcass value was .31 higher at 113.23 FOB plant.
Iowa barrows and gilts last week averaged 286.6 pounds, .4 pound lighter than the previous week , but 9.8 pounds heavier than 2013. Though the week-to-week drop is not great, it would seem to confirm a shift in the seasonal trend with weights now expected to consistently shrink through late July/early August.
The hog slaughter was estimated at 413,000 head 17,000 more than last week, and 8,000 greater than last year.
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