Wednesday's Closing Grain and Livestock Futures Prices.
Jul. corn closed at $4.41, down 4 and 1/2 cents
Jul. soybeans closed at $14.45 and 1/2, down 17 cents
Jul. soybean meal closed at $482.30, down $2.20
Jul. soybean oil closed at 38.42, down 52 points
Jul. wheat closed at $5.89 and 1/4, down 12 cents
Jun. live cattle closed at $143.02, down 47 cents
Jun. lean hogs closed at $115.97, up 67 cents
Jul. crude oil closed at $104.40, up 5 cents
Jul. cotton closed at 85.51, down 79 points
Jun. Class III milk closed at $21.31, up 3 cents
Jun. gold closed at $1,260.80, up $1.00
Dow Jones Industrial Average: 16,843.88, down 102.04 points
For additional Futures prices and charts click http://www.farms.com/markets
Agri Markets News Review
Soybean futures prices fell on profit taking and technical selling, with July closing at its lowest level in two months. USDA tightened the balance sheet slightly for both old and new crop, while leaving production unchanged. Past that – USDA did raise new crop world ending stocks just a little. In other words, the reports didn’t mean all that much, with traders focused on weather and the large, if not record, domestic crop expected this year. Soybean meal was lower and bean oil was higher on the adjustment of product spreads.
Corn was lower on fund and technical selling. USDA made no changes to either the old crop or new crop balance sheets. With this set of numbers out of the way, the trade’s back to watching weather and waiting for the USDA numbers out at the end of the month. Ethanol futures were lower. The EIA reports ethanol production for the week ending June 6 averaged 944,000 barrels per day, up 6,000 from the week before. Ethanol stocks totaled 18.4 million barrels, a week to week increase of 0.9%.
The wheat complex was lower on fund and technical selling. New crop ending stocks saw a much bigger than expected increase on lower feed and export estimates. Winter production is pegged at 1.381 billion bushels, down 2% on the month and 10% on the year. USDA also raised 2014/15 world wheat ending stocks to 188.61 million tons, with bigger production, export, and feed numbers. Australia’s Bureau of Resource Economics lowered its 2014/15 wheat estimate to 24.59 million tons, citing dry weather and adding that could decline further, depending on the timing and severity of the expected El Nino. Algeria bought 200,000 tons of optional origin milling wheat.
Chicago Mercantile Exchange live cattle futures were lower on profit taking, technical selling, and spillover from the drop in the feeder pit. June was down $.47 at $143.02 and August was $1.20 lower at $142.20.
Feeder cattle were down sharply on profit taking and overbought signals. Nothing has really changed fundamentally and pasture conditions continue to improve, which may set the stage for more gains later this week. August was $2.30 lower at $202.87 and September was down $2.17 at $203.62.
Direct cattle markets are quiet and widespread trade won’t occur until Thursday or Friday. Asking prices are holding around $147 in the South and $235 to $236 in the North. There are a few bids at $142 to $143 Live in Kansas and Texas, while the North remains at a standstill.
Boxed beef was mixed on light to moderate demand and offerings. Choice was down $.69 at $231.82 and Select was up $.60 at $222.95. The estimated slaughter of 115,000 head was down 2,000 on the week and 4,000 on the year.
Lean hog futures were mixed, mostly higher. The big features were spread trade and speculative buying, especially in the fall and winter months. The trade’s eager to see what comes out in USDA’s cold storage and quarterly hogs and pigs reports later this month. June was up $.67 at $115.97 and July was down $.12 at $125.02.
Cash hog trade was mixed. Even with tighter market ready numbers, there’s plenty of uncertainty about sustained pork demand, PEDv impact, and the high hog weights. The average Iowa/Southern Minnesota hog weight of 286.7 pounds was unchanged on the week and up nearly twelve pounds on the year. Cheaper corn and DDGs could lead to even higher weights.
National Direct barrows and gilts were down $1.52 at $102 to $116.50, with a weighted average of $112.63. The Eastern Cornbelt had no recent comparison, with a base price range of $102 to $111, for an average of $110.12, the Western Belt was up $1.05 at $106.50 to $116.50, with an average of $115.45, and Iowa/Southern Minnesota was $1.01 higher at $106.50 to $116.50, for an average of $115.59. Midwest cash hog trade was steady to $1 higher at $74 to $80. Missouri Direct trade was steady to $6 higher at $102 to $105 with supply and demand both called light to moderate. Missouri sows were steady to $2 lower at $64 to $77. Illinois Direct sows were steady at $66 to $78 on moderate demand for moderate offerings. Illinois boars ranged from $18 to $58.
The pork carcass cutout value was down $1.40 at $120.91, with all primals except ribs and bellies closing lower. The estimated hog slaughter of 409,000 head was unchanged from a week ago and up 5,000 from a year ago.
Click here to see more...