Tuesday's Closing Grain and Livestock Futures
May corn closed at $4.86 and 1/2, down 3 and 1/2 cents
May soybeans closed at $14.28, up 2 and 1/2 cents
May soybean meal closed at $463.70, up $1.70
May soybean oil closed at 40.74, down 10 points
May wheat closed at $7.08 and 1/4, down 6 and 1/4 cents
Apr. live cattle closed at $144.37, up 22 cents
Apr. lean hogs closed at $121.65, down $3.00
May crude oil closed at $99.19, down 41 cents
May cotton closed at 94.11, up 348 points
Apr. Class III milk closed at $23.83, down 26 cents
Apr. gold closed at $1,311.40, up 20 cents
Dow Jones Industrial Average: 16,367.88, up 91.19 points
For additional futures prices and charts click http://www.farms.com/markets
Market News Update:
Soybeans were higher on fund and commercial buying. The near term supply remains tight and demand continues to be strong. Still, there are signs Chinese demand could slow down due to economic woes and there’s more talk of Brazilian beans hitting U.S. ports. Soybean meal was higher on spillover from beans and oil was mixed. According to Brazil, soybean sales since the start of the month are 4.6 million tons, compared to 3.5 million for the entirety of March 2013.
Corn was lower on profit taking and technical selling. Weather forecasts for next week have improved a little and could allow for planting in some areas. Past that – even with good demand, the near term supply is large. Corn’s also continuing to watch the situation in Ukraine, but at least for now, shipments aren’t seeing much of a disruption. Ukraine’s Ag Ministry states that from the start of the marketing year July 1, 2013, total grain sales are 26.8 million tons, with corn accounting for 16.72 million tons of the total. Ethanol futures were lower.
The wheat complex was mostly lower on profit taking and technical selling. Wheat’s watching Ukraine and the potential for increased exports. The trade’s also keeping an eye on the very dry conditions around the U.S. Southern Plains. USDA notes crop condition ratings for winter wheat in Kansas, Oklahoma, and Texas declined over the past week due to high winds and low soil moisture. According to Ukraine’s Ag Ministry, wheat sales from July 1, 2013 to March 24, 2014 are 7.66 million tons, with cumulative grain sales 41% ahead of the previous marketing year.
USDA Mandatory reported cattle trading was limited in the Texas Panhandle and Kansas on Tuesday on moderate demand. Compared to last week, early sales were mostly steady at 150.00, but several sellers continued to pass on the current bids, DTN reported a few cattle sold in Colorado at 152.00. Lower futures and attractive basis levels may have prompted some selling interest. Showlists are priced around 151.00 in the South and 245.00 in the North. The cattle slaughter was estimated at 118.000 head, even with last week, but 2,000 smaller than last year.
Boxed beef cutout values were steady on choice and lower on select on light demand and offerings. Choice boxed beef was up .13 at 241.35, and select was 1.48 lower at 234.45.
Live cattle contracts on the Chicago Mercantile Exchange settled unchanged to 45 points higher. The early gains in the market struggled to draw aggressive buyer support back into the market. This allowed narrow gains to exist through the session. But weaker boxed beef values in the morning report seemed to take any bullishness out of the market and created light to moderate selling activity. April settled .22 higher at 144.37, and June was unchanged at 136.42.
Feeder cattle settled .52 to 105 higher. Traders continue to focus on the potential of tight supplies through the next several weeks and months, and the idea that higher placements in February may not change the overall number of cattle available, but just pulled available supplies up the calendar. March settled .52 higher at 177.22 and April up 1.05 at 177.35.
Feeder cattle receipts at the Oklahoma National Stockyards yesterday totaled 8,000 head. Compared to last week feeder steers and heifers were 1.00 to 3.00 higher except steers over 850 pounds steady to 1.00 lower. Stocker cattle and calves were 3.00 to 6.00 higher. Demand was very good for feeders following last week’s bearish cattle on feed report. Demand was moderate for those cattle that will finish late summer. Feeder steers calves weighing 550 to 600 pounds traded from 209.00 to 212.50. 550 to 600 pound heifer calves brought 182.50 to 194.00.
Lean hogs settled the 3.00 limit lower in all contracts from April through October. There seemed to be very little interest in stepping back into the markets as the previous market peak could allow for an aggressive market drop before support redevelops. Emotional trading and market positioning is likely to trump any fundamental market shifts, especially ahead of the hogs and pigs report due out on Friday afternoon. April settled 3.00 points lower at 121.65, and June was also down the 3.00 limit at 125.20.
Barrows and gilts in the Iowa/Minnesota direct trade closed 1.15 lower at 126.64 weighted average on a carcass basis, the West was down 1.44 at 126.23 and in the East the market was .88 higher at 122.85. Missouri direct base carcass meat price was steady to 1.00 higher from 117.00 to 121.00. Barrows and gilts at the terminals were steady with instances of 1.00 to 3.00 lower from 80.00 to 88.00.
The pork carcass value was .25 lower FOB plant at 131.39 on a negotiated basis.
Given the fact that the pork carcass value continues to hover as much as $9 over the latest estimate of the cash index, packer margins remain quite profitable and supportive of the most aggressive chain speed market hog supplies can practically fund.
The Tuesday hog kill was estimated at 418,000 head, 3,000 more than last week, but 12,000 less than last year.
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