Thursday’s Closing Grain and Livestock Futures
Mar. corn closed at $3.94 and 1/4, down 2 cents
Jan. soybeans closed at $10.45, down 7 and 3/4 cents
Jan. soybean meal closed at $361.30, down $7.20
Jan. soybean oil closed at 33.58, up 60 points
Mar. wheat closed at $5.67 , down 12 and 1/2 cents
Feb. live cattle closed at $163.60, down $2.30
Feb. lean hogs closed at $78.17, down $1.15
Feb. crude oil closed at $48.79, up 14 cents
Mar. cotton closed at 60.56, up 13 points
Jan. Class III milk closed at $16.00, up 20 cents
Jan. gold closed at $1,208.40, down $2.20
Dow Jones Industrial Average: 17,907.87, up 323.35 points
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Market News Recap
Soybeans were lower on fund and technical selling. South American weather looks good overall, there are some trouble areas, but again, good overall, with early harvest activity starting in parts of Brazil. So far, yields are reportedly mixed. Demand remains strong with China buying 118,000 tons of 2014/15 beans and another bullish week for exports. Soybean meal was lower and bean oil was higher on the adjustment of product spreads.
Corn was lower on fund and technical selling. Weekly export numbers were a little disappointing, but remain ahead of last year’s pace. We’ll know a lot more about demand Monday, with a slew of new USDA numbers out at Noon Eastern/11 AM Central. Ethanol futures were mixed.
The wheat complex was lower on fund and technical selling. Weekly export sales were a new marketing year low and it was another slow week for shipments. Also, the dollar was mostly higher and wheat’s fundamentals remain bearish. Tunisia bought 117,000 tons of milling wheat and in sell-buy-sell trade, Japan picked up 122,800 tons of food wheat.
Feedlot country was quiet on Thursday with just a few bids on the table in Nebraska at 170.00 live and 270.00 dressed in Iowa and Nebraska. Business is probably done for the week, especially in light of the strange discrepancy between aggressive packer spending on Tuesday and negative psychology on the board. The balance of the showlists are probably priced around 172.00 to 174.00 in the South and 275.00 in the North, The kill was estimated at 108,000 head, 10,000 less than last year, but not comparable to last week due to the holiday.
Boxed beef cutout values were higher on moderate to fairly good demand and light to moderate offerings. Choice beef was up 1.82 at 254.57 and select was up 3.22 at 245.34.
Chicago Mercantile Exchange live cattle contracts settled 70 to 267 points lower. Mixed prices that held through the morning eroded at midday despite sharply higher boxed beef values in the morning report. The surge higher in the front month feeder cattle futures was unable to draw buyers back to the nearby or deferred live cattle contracts. Live and feeder cattle futures were pressured by long liquidation and technical selling. February settled 2.30 lower at 163.60, and April was also down 2.30 at 162.42.
Feeder cattle settled mostly lower from 2 to 372 points. Feeder cattle had traded sharply higher for most of the session but ended up deep in the red at the close. Trade was sluggish through much of the session. January settled 2 lower higher at 225.82, and March was down 3.27 at 217.05.
Feeder cattle receipts at the Huss Platte Valley Auction at Kearney, Nebraska totaled 5340 head on Wednesday. This was the first reported sale in the last three weeks, so a trend is not available. However, a sharply higher undertone was noted. The demand was good to very good from start to finish from a large crowd of buyers. 260 head of feeder steers, medium and large 1 weighing 728 pounds averaged 243.23 per hundredweight. 305 heifers averaging 723 pounds brought 224.92.
Lean hogs settled 107 to 230 points lower as moderate to strong selling pressure held through the session as traders looked for additional direction from the outside markets as well as stability in cash prices. But for now, traders are expecting supplies to increase unless additional news develops over the next couple of months. This may add additional pressure to the complex given the recent lack of support in grain markets. February settled 1.15 lower at 78.17, and April was down 1.92 at 79.95.
Barrows and gilts in the Iowa/Minnesota direct trade closed 1.15 lower at 73.00 weighted average on a carcass basis, the West was down 1.25 at 72.86, and the East was not reported due to confidentiality. Missouri direct base carcass meat price was 1.00 lower at 69.00. Midwest hogs on a live basis were steady from 47.00 to 58.00.
The pork carcass cutout value ended he day 1.38 higher FOB plant at 83.91. Only the loin primal was lower.
For the week ending January 3, Iowa barrows and gilts averaged 287.7 pounds, 0.8 pounds heavier than the prior week and 4.8 pounds bigger than 2014.
The Thursday hog kill was estimated at 424,000 head, with no comparison to last week, New Year ’s Day, but down 9,000 from last year.
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