Monday's Closing Futures Prices
Dec. corn closed at $3.32 and 1/2, up 9 and 1/4 cents
Nov. soybeans closed at $9.42 and 1/4, up 30 cents
Oct. soybean meal closed at $320.30, up $12.30
Oct. soybean oil closed at 33.32, up 103 points
Dec. wheat closed at $4.91 and 1/2, up 5 and 3/4 cents
Oct. live cattle closed at $163.05, up 65 cents
Oct. lean hogs closed at $107.17, up $1.57
Nov. crude oil closed at $90.94, up 60 cents
Dec. cotton closed at 64.38, up 191 points
Oct. Class III milk closed at $24.11, down 16 cents
Oct. gold closed at $1,206.70, up $14.50
Dow Jones Industrial Average: 16,991.97, down 17.72 points
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Ag Market News And ReCap
Soybeans were higher on commercial and technical buying. The trade was assessing the impact of weekend weather and waiting for the weekly progress numbers, along with Friday’s USDA reports. USDA reports that as of Sunday, 83% of U.S. beans are dropping leaves, compared to the five year average of 84%, and 20% is harvested, compared to 35% on average. 73% of U.S. beans are rated good to excellent, up 1% on the week.
Corn was higher on commercial and technical buying. Corn was also assessing weather from the past weekend, while waiting for USDA’s weekly crop numbers and the monthly set of supply, demand, and production numbers out Friday. According to USDA, 77% of corn is mature, compared to 81% on average, and 17% is harvested, compared to 32% on average. 74% of this year’s corn crop is called good to excellent, unchanged from a week ago. Ethanol futures were higher.
The wheat was higher on commercial and technical buying. Wheat’s oversold and with prices more competitive on the export market, there’s new commercial demand. For spring wheat, USDA says 96% is harvested, compared to 99% on average, and for winter wheat, 56% is planted, compared to 53% on average, with 28% emerged, compared to 24% on average.
Cattle country was quiet following the distribution of the new showlists. The early month offerings appears to be generally smaller than last week with only Nebraska showing a few more ready steers and heifers. A few asking prices have been reported around 164.00 to 165.00 in the South and 255.00 to 260.00 in the North. The cattle slaughter on Monday is estimated at 114,000 head, 1,000 below last week and 2,000 smaller than a year ago.
Boxed beef cutout values end sharply higher on moderate to fairly good demand and light offerings. Choice boxed beef was up 3.04 at 241.36, and select was up 3.02 at 229.38.
Chicago Mercantile Exchange live cattle contracts settled 42 to 135 points higher on Monday. The market was supported by the packer demand for cattle on Friday and sharply higher boxed beef values at midday. However many traders remain cautious due to tough packer margins and uncertain beef demand as completive meat supplies increase. October settled .65 higher at 163.05, and December was up .42 at 166.30.
Feeder cattle settled 35 to 87 points lower in thin trade volume. Some in the market believe last week’s runaway was overdone and due for a correction. Higher grain prices also weighed on feeder futures. October was down .87 at 240.00, and November was down .70 at 240.27.
Feeder cattle receipts at the Joplin, Missouri Regional Stockyards on Monday totaled 5,000 head. Compared to last week, steers weighing less than 550 pounds trended 2.00 to 8.00 higher, over 550 pounds mostly steady. Heifers traded 1.00 to 5.00 higher. Feeder steers medium and large 1 weighing 500 to 600 pounds traded from 260.00 to 282.50. 5 to 6 weight heifers brought 245.00 to 262.50.
Lean hogs settled unchanged to 285 higher. Triple digit gains were seen as the board moved to correct after Friday’s sharp drop. Nearby contracts were supported by strong wholesale demand and the premium status of the cash index. October was up 1.57 at 107.17, and December was 2.85 higher at 95.87.
There was slow hog market activity with light to moderate demand. Barrows and gilts in the Iowa/Minnesota direct trade closed 3.16 lower at 104.47 weighted average carcass basis, the West was down 2.33 at 105.19, and the East was .26 lower at 102.20. Missouri direct base carcass meat price was 1.00 lower to 1.00 higher from 96.00 to 101.00. Midwest hogs closed steady with instances of 2.00 to 3.00 higher from 72.00 to 80.00 live basis.
The pork carcass value ended the day .70 higher at 124.45 FOB plant. Bellies, hams and loins were higher, all other cuts were lower.
Although the hog kill has been trailing 2013 more than expected, ready numbers typically increase significantly through October and November. That’s probably the way to bet over the next 30-60 days.
October is traditionally billed as “Pork Month”, a time when both producers and retailers work to more aggressively promote and feature the product to consumers. Such extra efforts should help counter the seasonal increase in live supplies.
Monday’s hog slaughter was estimated at 425,000 head, 55,000 more than last week, but 8,000 less than last year.
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