Wednesday's Closing Grain and Livestock Futures
May corn closed at $4.95 and 3/4, down 11 and 3/4 cents
May soybeans closed at $14.62 and 1/4, down 22 and 1/4 cents
May soybean meal closed at $476.50, down $6.20
May soybean oil closed at 40.85, down 55 points
May wheat closed at $6.69 and 1/4, down 16 cents
Apr. live cattle closed at $144.60, down 15 cents
Apr. lean hogs closed at $127.00, down 80 cents
May crude oil closed at $99.62, down 12 cents
May cotton closed at 91.51, down 56 points
Apr. Class III milk closed at $24.03, up 9 cents
Apr. gold closed at $1,290.50, up $10.90
Dow Jones Industrial Average: 16,573.00, up 40.39 points
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Market News Update:
Soybeans were lower on profit taking and technical selling. There was no fresh supportive news and harvest conditions in South America look generally good at this time. Still, the near term supply is tight and demand continues to be strong, with more imports likely in the coming weeks. Soybean meal and oil were lower, following the lead of beans. Brazil’s soybean exports for March were 6.2 million tons, with meal exports topping 700,000 tons. USDA’s weekly export sales report is out Thursday at 8:30 AM Eastern/7:30 AM Central. Old crop soybeans are pegged at -200,000 to 100,000 tons, with new crop at 300,000 to 575,000 tons; old crop meal is seen at 50,000 to 220,000 tons, with new crop at 0 to 150,000 tons; old crop soybean oil is placed at 0 to 50,000 tons, with new crop at 0 to 10,000 tons.
Corn was lower on fund and technical selling. Rainfall is helping soil conditions around some key U.S. growing areas, recharging moisture ahead of widespread planting. Also, even with solid demand, there’s a lot of corn available. However, it looks like planting will be delayed in parts of the Midwest, with USDA’s weekly national crop progress report resuming April 7. Ethanol futures were lower. The EIA reports ethanol production for the week ending March 28 was 922,000 barrels per day, up 37,000 on the week and the highest so far this year. Weekly old crop corn exports are expected to be between 500,000 and 1.4 million tons, with new crop at 0 to 150,000 tons.
The wheat complex was lower on fund and technical selling. Wheat’s also responding to rainfall, in the soft red winter region and parts of Kansas, but the Southern Plains will need a lot more to really make a difference. The complex is also keeping an eye on export trade and politics in the Black Sea region. Ukraine’s Ag Ministry reports 86% of spring grains are planted, well ahead of a year ago, despite the political uncertainty in the region. Jordan is tendering for 150,000 tons of optional origin wheat. Weekly old crop wheat sales are estimated at 100,000 to 400,000 tons, with new crop at 125,000 to 550,000 tons.
Chicago Mercantile Exchange live cattle futures were mixed, mostly higher. April was down on the weak corn and beef demand cautions as we get closer to grilling season, while the other months were up, following the lead of the feeder pit. April was down $.15 at $144.60 and June was up $.30 at $136.77.
Feeder cattle were higher on the lower feed prices and traders getting ready for cash business. April was $.77 higher at $177.22 and May was up $1.20 at $177.97.
Direct cattle markets were quiet on Wednesday. Packer inquiry was very light and asking prices were not well defined, with some showlists priced at $153 Live in the South and $246+ Dressed in the North. Widespread volume this week expected to wait until Thursday or Friday.
At the Missouri Valley Commission Company in Boonville, Missouri, feeder steers and heifers were steady to $3 higher. Slaughter cows were up $2 to $4 with USDA noting a large number of cows available. The feeder supply was mostly very small packages and singles with very few heavyweights. Supply was light and demand was moderate. The feeder supply was 64% steers and 22% of all feeders weighted more than 600 pounds. 400 to 500 pound feeder steers were $230 to $247 and 400 to 500 pound heifers ranged from $209 to $224.
Boxed beef was higher on moderate demand and light to moderate offerings. Choice was up $1.10 at $233.64 and Select was $.71 higher at $223.66. The estimated slaughter of 117,000 head was down 1,000 on the week and 2,000 on the year.
Lean hogs were mostly lower on profit taking and concerns about pork demand due to high prices. Also, the average Iowa/Southern Minnesota hog weight posted another week to week gain. There’s still plenty of supply uncertainty connected to PEDv, but general market sentiment seems to be that higher weights could cancel out some of the supply loss. April was down $.80 at $127 and June was $2.80 lower at $124.80.
National Direct barrows and gilts were $.13 lower at $113 to $131, for a weighted average of $126.59, the Western Cornbelt was down $1.53 at $113 to $130, with an average of $127.74, and Iowa/Southern Minnesota was $1.93 lower at $113 to $130, for an average of $127.79. The Eastern Cornbelt was not released due to confidentiality. Butcher hogs at the terminal markets were mostly steady, with an instance of $2 lower, with tops at $85 to $99. Missouri Direct butcher trade was steady at $120 to $121, with sows steady to $2 higher at $78 to $91. Illinois Direct sows were steady at $85 to $100. The average Iowa/Southern Minnesota hog weight for the week ending March 29 was 285.0 pounds, compared to 283.9 the previous week and 276.2 a year ago.
The pork carcass cutout value was up $1.11 at $133.74. All cuts, except butts, posted gains, with the belly primal gaining $4.56. The estimated slaughter of 410,000 was down 2,000 on the week and 15,000 on the year.
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