Thursday's Closing Grain & Livestock Futures Prices
Jul. corn closed at $4.69 and 1/2, down 3 cents
Jul. soybeans closed at $14.99, up 1 and 1/4 cents
Jul. soybean meal closed at $498.40, down 10 cents
Jul. soybean oil closed at 39.41, down 22 points
Jul. wheat closed at $6.32 and 1/2, down 6 and 1/4 cents
Jun. live cattle closed at $138.02, up $1.87
Jun. lean hogs closed at $114.30, down 25 cents
Jul. crude oil closed at $103.58, up 86 cents
Jul. cotton closed at 86.15, up 128 points
Jun. Class III milk closed at $20.58, down 45 cents
Aug. gold closed at $1,257.10, down $2.60
Dow Jones Industrial Average: 16,698.68, up 65.50 points
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Agri Market News Review
Soybeans were modestly higher on fund and commercial buying. Old crop supplies remain tight and demand continues to look very strong, Friday’s export sales report should be a reminder of that. However, even if beans are fundamentally bullish, they’re technically overbought. Soybean meal was mostly higher and bean oil was lower, with both responding to their respective demand outlooks.
Corn was lower on fund and technical selling. Planting and development weather looks good over the near term, except for more rain in the forecast for North Dakota. Still, losses were limited by the strong domestic and export demand. Ethanol futures were higher. The International Grains Council projects 2014/15 world corn production at 955 million tons. According to the EIA, ethanol production for the week ending May 23 averaged 927,000 barrels per day, up 2,000 on the week.
The wheat complex was lower on fund and technical selling. The complex remains fundamentally bearish, with slow export demand and a large available world supply. That said – there are some weather concerns about dry weather around parts of Kazakhstan and Russia, keeping the region in the spotlight, even with a political cool-down in Ukraine. The latest 2014/15 world wheat production estimate from the International Grains Council is 694 million tons.
Although the cattle trade volume seemed to be slowing on Thursday afternoon, it sounds like some buyers would still like to do some late week business. But even if trade volume continues to increase, the suspicion is cash business is almost done for the week. Cattle traded from 143.00 to 145.00 live and 230.00 to 232.00 on a dressed basis. Cattle still on the showlists are probably priced around 144.00 to 145.00 live and 234.00 dressed. The slaughter was estimated at 120,000 head, 3,000 more than last week, but 7,000 less than a year ago.
Boxed beef cutout values were weak on moderate demand and moderate to heavy offerings. Choice boxed beef was down .66 at 233.65, and select was .38 lower at 223.77.
Chicago Mercantile Exchange live cattle contracts settled 70 to 207 higher on Thursday. John Harrington at DTN reported live contracts enjoyed the happiest bullish explosion the pit had seen in weeks. Inspired by both feedlot cash stability and decent post-holiday product strength. June settled 1.87 higher at 138.02, and August was up 2.07 at 139.17.
Feeder cattle finished with triple digit gains mirroring the aggressive action in the live pit as well as tapping more direct sources of strength, sliding corn prices, and tightening replacement supplies. August settled 1.47 higher at 197.05, and Sept was up 1.57 at 198.07.
Feeder cattle receipts at the Hub City Livestock Auction at Aberdeen, South Dakota totaled 4178 head on Wednesday. Feeder steers traded from 4.00 lower to 3.00 higher and Heifers were 1.00 lower to 3.00 higher. There was good to very good demand for the offering of small packages and many load lots. Feeder steers, medium and large 1 averaging 771 pounds brought 191.70 per hundredweight. 776 pound heifers traded at 182.89.
Lean hogs settled 80 points higher to 67 lower ignoring the bullish vibes rumbling from the cattle complex. Long liquidation appeared to be the main feature in Thursday’s session. June settled .25 lower at 114.30, and July was down .67 at 120.60.
Barrows and gilts in the Iowa/Minnesota direct trade closed 1.44 higher with a weighted average of 109.55 on a carcass basis, the West was up 1.23 at 109.21, but the East was not reported due to confidentiality. Missouri direct base carcass meat price was steady from 96.00 to 103.00. Barrows and gilts at Midwest markets were steady to 1.00 higher from 72.00 to 78.00.
The Pork carcass cutout value FOB plant was 1.50 lower at 113.75. All primal cuts were lower with ribs down the most at over $8.00.
Iowa butcher weights dropped to 286.7 pounds, 0.8 pounds lighter than the previous week, though still 11.3 pounds heavier than 2013. Barrows and gilts should now trend lighter at least through midsummer.
The Thursday hog kill was estimated at 418,000 head, 43,000 more than last week, but 7,000 less than last year.
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