Monday's Closing Grain and Livestock Futures
Dec. corn closed at $4.53 and 1/4, up 2 and 1/4 cents
Nov. soybeans closed at $13.07 and 3/4, down 7 and 1/2 cents
Oct. soybean meal closed at $411.10, down $2.30
Oct. soybean oil closed at 41.97, down 12 points
Dec. wheat closed at $6.53 and 1/2, up 7 and 1/4 cents
Oct. live cattle closed at $126.60, up 65 cents
Oct. lean hogs closed at $90.17, up 12 cents
Nov. crude oil closed at $103.59, down $1.16
Dec. cotton closed at 84.28, down 25 points
Oct. Class III milk closed at $17.92, down 17 cents
Oct. gold closed at $1,327.00, down $5.60
Dow Jones Industrial Average: 15,401.38, down 49.71 points
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Market New and ReCap
Soybeans were lower on technical and fund selling. Thanks to a generally good week of weather, crop conditions look good and, in any event, there was no fresh news to start the week. USDA reports 47% of soybeans are dropping leaves, compared to 71% a year ago and the five year average of 56%, while 3% is harvested, compared to 21% a year ago and 9% on average, with 50% rated good to excellent, unchanged on the week. Soybean meal and oil were down, following beans. According to Dow Jones Newswires, Indian soybean meal traders have signed papers to export 700,000 tons from the new crop. China’s Ministry of Customs reports soybean imports during August were 6.367 million tons, up 44.12% on the year, with 5.111 million of that coming from Brazil and 831,634 tons from Argentina. Year to date, soybean imports are 41.054 million tons, 4.37% above January through August 2012.
Corn was higher on short covering and fund buying. As the weeks go on, corn is in less and less of a weather market and Mexico bought 197,200 tons of U.S. corn. USDA states 91% of corn has dented, compared to 99% last year and 93% on average and 40% is mature, compared to 86% a year ago and 55% on average, while 7% is harvested, compared to 37% last year and 16% on average, with 55% of the crop rated good to excellent, up 2%. Ethanol was mostly firm. South Korea’s Nonghyup Feed Inc. bought 68,000 tons of optional origin corn.
The wheat complex was mostly higher with Chicago and Kansas City up on short covering and fund buying, while Minneapolis was weak, watching the tail end of the spring wheat harvest. Taiwan’s tendering for U.S. wheat and export demand is improving with fundamentals turning less bearish. For spring wheat, 93% is harvested, compared to 100% a year ago and 93% on average, and for winter wheat, 23% is planted, compared to 23% last year and 24% on average. The United Kingdom’s Home Grown Cereals Authority estimates 2013/14 wheat imports at 2.94 million tons, compared to 2.53 million in 2012/13. Bangladesh rejected all offers on a tender for 50,000 tons of optional origin food grade wheat, citing current high prices. According to China’s Ministry of Customs, wheat imports during August were 417,823 tons, 66.2% more than last year, with the U.S. supplying 392,873 tons of the total.
The total trade volume in the cattle last week was larger in all areas, especially Nebraska. The new showlists distributed on Monday appears to be generally smaller with only Texas showing more ready steers and heifers. Needless to say the cash market was very quiet with little business expected until the second half of the week. Some initial asking prices are around 126.00 plus in the South, and 198.00 to 200.00 in the North. Monday’s cattle kill was estimated at 120,000 head, 4,000 more than last week, but 6,000 less than last year.
Boxed beef cutout values were higher on light to moderate demand and light offerings. Choice beef was up 1.16 at 193.55, and select was .83 higher at 176.79.
Live cattle contracts on the Chicago Mercantile Exchange settled unchanged to 75 points higher. The market saw strong support on Monday with the nearby contracts outpacing the deferred issues. The back months saw less aggressive action with the trade less enthusiastic about summer 2014 contract months. Higher cash prices last week, higher boxed prices at midday and bullish cattle on feed report were supportive to the futures market. October settled .65 higher at 126.60; December was up .75 at 130.50.
Feeder cattle contracts ended 52 to 187 points higher. The combination of cash market support late last week and the bullish cattle on feed report helped to spark widespread buyer support in the feeder pit. October feeders held onto strong triple-digit gains as traders focused on the ability of drawing increased activity back into the market over the coming days. September settled .52 higher at 157.62, and October was up 1.87 at 162.10.
Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 85000 head. Feeder steers and heifers were not well tested in the early rounds. Steer and heifer calves were steady to firm on limited comparable offerings. Demand was moderate to good for all classes. Feeder steers medium and large 1, calves weighing 525 to 575 pounds brought 165.00 to 175.00. 540 to 565 pound heifer calves traded from 153.00 to 158.00.
Lean hogs settled 12 to 67 higher as light buyer support trickled into the market. The focus of traders was on the strong support across nearby cattle futures. This wide market support is not enough though to draw active buyer support over the long term, but it helped to stabilize the market following the sharp pressure last week., October settled .12 higher at 90.17 and lean hogs finished at 86.42 up .35.
Barrows and gilts in the Iowa/Minnesota direct trade closed .89 lower on a carcass basis with a weighted average of 92.26; the West was down .97 at 92.19. The Eastern markets were not reported due to confidentiality. Missouri direct base carcass meat price closed steady to 1.00 lower from 88.00 to 90.00. Terminal hogs were 1.00 higher to 1.00 lower from 63.00 to 70.00.
The pork carcass value closed .12 lower at 100.14 FOB plant on a negotiated basis.
Hog slaughter last week totaled no more than 2,180,000 head, 9.2% smaller than last year. This was the fifth consecutive week with slaughter below the year-ago level and the ninth consecutive week with hog slaughter lower than expected based on the June pig report. The death toll linked to PEDv looms larger and larger.
Monday’s hog slaughter was estimated at 419,000 head, 9,000 less than last week, and 15,000 less than last year.
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