Tuesday's Closing Grain & Livestock Futures Prices
May corn closed at $5.15 and 3/4, up 8 cents
May soybeans closed at $15.24, up 15 and 3/4 cents
May soybean meal closed at $499.90, up $3.00
May soybean oil closed at 42.77, up 15 points
May wheat closed at $7.08 and 3/4, up 7 and 3/4 cents
Apr. live cattle closed at $145.50, up 10 cents
Jun. lean hogs closed at $125.27, up $1.05
Jun. crude oil closed at $101.28, up 44 cents
Jul. cotton closed at 94.06, up 183 points
May Class III milk closed at $22.48, down 9 cents
Jun. gold closed at $1,296.30, down $2.70
Dow Jones Industrial Average: 16,535.37, up 86.63 points
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Market News Review
Soybeans were higher on fund and commercial buying. The near term supply remains tight and demand continues to be strong, from both the export and the domestic sides. New crop gains were limited by planting uncertainties. As of Sunday, 3% of beans are planted, compared to 4% on average. Soybean meal and oil were higher, following the lead of beans. Chinese demand continues to be a question mark. Credit’s a concern, but crush margins have improved. Allendale adds the spread between U.S. and Brazilian beans has narrowed.
Corn hit new eight month highs on fund and technical buying. 19% of corn is planted and 3% has emerged, both slower than average, with more delays this week. Most of the delays are north of I-80, with areas further south expected to make comparatively better progress. Ethanol futures were higher.
The wheat complex was mostly higher with Chicago and Kansas City up on fund and speculative buying. The winter wheat condition rating declined over the past week due to continued weather problems in the Southern Plains. The Wheat Quality Council’s Kansas crop tour is ongoing this week. There are weather concerns for Russia and Australia, but nothing too serious yet. The Philippines bought 52,500 tons of feed wheat from Australia.
Cattle country remained quiet on Tuesday afternoon without even a token bid on the table. Packers are reportedly short bought and may be forced to do business at mid-week. Last week’s trade volume was generally light. Asking prices are around 148.00 in the South and 238.00 plus in the North, The kill was estimated at 120,000 head, 4,000 more than last week, but 5,000 smaller than last year.
Boxed beef cutout values were higher on the choice and lower on select on light to moderate demand and offerings. Choice beef was up 1.19 at 234.36 and select was 1.15 lower at 220.42.
Live cattle contracts were mixed from 40 points higher to 25 lower. Light to moderate pressure held in the live cattle futures. However trade did continue to sustain the 145.00 per hundredweight threshold in the April contract, which could limit the additional downside pressure to the market for the near future. Contracts were stuck in a narrow range following the lack of direction in meat values in the morning boxed beef report. April settled .10 higher at 145.50 and June was up .20 at 137.02.
Feeder cattle settled mostly higher with only May in the red. The May contract backed away from the aggressive gains seen earlier in the week, although most of the activity was associated with position taking rather than any long term market direction. Firm support held in the August and September contracts as traders look for tight supplies to continue through the summer months. May settled .52 lower at 180.57, and August was up .20 at 186.55.
Feeder cattle receipts at the Joplin, Missouri Regional Stockyards on Monday totaled 3400 head. Compared to last week, steer and heifer calves trended steady to 3.00 higher, yearlings were steady. The demand was called moderate to good on a moderate supply. Feeder steers, medium and large 1 averaging 529 pounds brought 212.36 per hundredweight. Heifers averaging 520 pounds traded at 197.81 at Joplin.
Lean hogs settled 65 to 195 higher with only May lower. Aggressive buyer support quickly redeveloped in June through December contract months with those months holding triple digit gains. Markets remained range bound and the expectation is that technical support was being developed in June and July futures contracts and that may help to draw additional buyer interest into the market over the near future. May settled .70 lower at 120.27 and June was up 1.05 at 125.27.
Barrows and gilts in the Iowa/Minnesota direct trade closed 1.06 lower at 111.06 weighted average on a carcass basis. Western direct hogs were down .72 at 110.95. In the East the hog market was 1.26 lower at 107.53. Missouri direct base carcass meat price closed steady from 105.00 to 107.00. Barrows and gilts at Midwest markets on a live basis were steady to 1.00 lower from 76.00 to 88.00.
The most recently released USDA data shows hog carcass weights steady at 215 pounds while barrow and gilt dressed weights remain flat at 213 pounds, still approximately 3% heavier than last year. Even if market numbers start to tighten, most agree that dressed weights should continue to significantly overshadow 2013.
The pork carcass cutout value FOB plant was 3.34 lower at 115.07 on a negotiated basis. Bellies were responsible for the loss and were $13.22 lower.
Tuesday’s hog slaughter was estimated at 415,000 head, 4,000 more than last week, but 1,000 less than last year.
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