Thursday's Closing Grain and Livestock Futures
Dec. corn closed at $4.22 and 3/4, down 2 and 3/4 cents
Jan. soybeans closed at $13.28, down 1 and 1/2 cents
Dec. soybean meal closed at $446.10, down $1.80
Dec. soybean oil closed at 40.38, up 24 points
Dec. wheat closed at $6.38, down 9 and 1/4 cents
Dec. live cattle closed at $131.65, down $1.07
Dec. lean hogs closed at $82.52, down $1.15
Jan. crude oil closed at $97.38, up 18 cents
Mar. cotton closed at 78.85, down 20 points
Dec. Class III milk closed at $18.98, down 25 cents
Dec. gold closed at $1,233.20, down $15.00
Dow Jones Industrial Average: 15,821.51, down 68.26 points
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Market News Review
Soybeans were mostly lower, taking the path of least resistance. China bought 111,000 tons of 2014/15 U.S. beans, but there are some uncertainties connected to longer term Chinese demand. Still, the fundamentals remain bullish with another solid week for export sales and shipments. Soybean meal was lower and bean oil was higher on the adjustment of product spreads. Agroconsult, via Reuters, estimates Brazil’s crop at a record 90.7 million tons, compared to their August projection of 86 million tons.
Corn was lower on technical and fund selling. Those Chinese concerns are also a bearish factor for corn, the fundamentals continue to look negative, and there was no surprising fresh supportive news. Weekly export sales were within estimates and didn’t provide much of a spark. Ethanol futures were higher. Via Reuters, Agroconsult sees Brazil’s corn crop at 76.1 million tons, up modestly from their August forecast of 75.7 million tons.
The wheat complex was lower on fund and technical selling. Weekly export sales were a new marketing year low and shipments were less than what’s needed every week to meet USDA expectations. Fundamentals are basically neutral and USDA’s expected to raise the world production guess next week in the supply and demand update. DTN reports Algeria bought “at least” 100,000 tons of likely French origin milling wheat.
Moderate cattle trade volume was evident on Thursday afternoon in both Kansas and Texas, although Kansas appeared to be the more active of the two regions. The market was steady with last week at 132.00. Significant losses in live cattle futures no doubt promoted selling interest among some risk managers. Activity in the North remained limited with a few bids reported at 131.00 to 132.00 live and 208.00 to 209.00 dressed. Feedlot managers there are holding for higher asking prices of 210.00 to 212.00 dressed. The kill totaled 122,000 head, 6,000 smaller than last year, and not comparable to last week’s holiday.
Boxed beef cutout values were weak on light demand and light to moderate offerings. Choice boxed beef was down .89 at 202.41, and select was .42 lower at 189.62.
Live cattle futures contracts settled 32 to 105 points lower. Futures saw mixed prices early but strong aggressive losses developed through the pit in the morning as pressure developed in the lean hog contracts and a lack of confirmation of widespread beef values created moderate to active liquidation. The lack of support through the complex may create uncertainty through the end of the week. December settled 1.07 lower at 131.65; the February was down 1.52 at 132.90.
Feeder cattle ended the session 32 to 105 points in the red on the lack of support in the live pit and corn markets moving into positive territory. The moves in the livestock market are based less on fundamental changes in the market and more on the lack of renewed interest during the trading session. January finished 1.15 lower at 82.52, and February was down .32 at 88.67.
Feeder cattle receipts at the Huss Platte Valley Auction in Nebraska on Wednesday totaled 4280 head. Compared with two weeks ago, steers and heifers with precondition shots or weaned sold steady to 4.00 higher. Calves without shots sold with a lower undertone. Demand was good from start to finish from a large crowd of buyers. 342 head of feeder steers averaging 727 pounds traded at 174.33 per hundredweight. 324 heifers weighing 723 averaged 161.72.
Lean hogs settled 22 to 115 points lower as pressure held through the lean hog market. The lack of support in both cash and wholesale pork values in the morning report added to the already limited interest seen in the futures market. December settled 1.15 lower at 82.52, and February was down .32 at 88.67.
Barrows and gilts in the Iowa/Minnesota direct trade closed 1.08 lower at 77.70 on a carcass basis, the West was down 1.12 at 77.67, and the East closed .37 lower at 78.03. Missouri direct base carcass meat price was steady from 71.00 to 72.00. At the terminals barrows and gilts were 1.00 lower to 2.00 higher on a live basis from 52.00 to 58.00.
The pork carcass value ended .14 higher at 89.33 FOB plant on a negotiated basis.
The scale house in hog country just keeps setting records. Iowa barrows and gilts last week averaged 281.7 pounds, 0.3 pounds heavier than the prior week and 6.5 pounds greater than 2012.
Thursday’s hog slaughter was estimated at 438,000 head, 8,000 more than last year, no comparison to last week due to the Thanksgiving holiday.
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