Closing Grain and Livestock Futures
Mar. corn closed at $4.31 and 3/4, up 2 and 1/4 cents
Mar. soybeans closed at $12.87 and 3/4, up 3 cents
Mar. soybean meal closed at $430.90, up $5.40
Mar. soybean oil closed at 37.06, down 53 points
Mar. wheat closed at $5.63 and 1/2, down 1 and 3/4 cents
Feb. live cattle closed at $143.15, down 25 cents
Feb. lean hogs closed at $85.57, down 80 cents
Mar. crude oil closed at $95.72, down 92 cents
Mar. cotton closed at 84.25, down 296 points
Feb. Class III milk closed at $22.78, up 33 cents
Mar. gold closed at $1,263.50, down 90 cents
Dow Jones Industrial Average: 15,837.88, down 41.23 points
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Market News Update
Soybeans were mostly lower. Old crop fundamentals remain strong, supporting the nearbys, and overall demand looks solid with unknown destinations picking up 183,000 tons of new crop U.S. beans. However, conditions around South America appear to be improving with more rain in the forecast for dry areas of Argentina.
Soybean meal was mixed with old crop up and new crop down, while soybean oil was modestly lower, with crude oil posting losses. According to Reuters and SA Commodities, Brazil has 650,000 tons of soybeans scheduled to ship in late January and 2.5 million tons set to be loaded in February. Agriculture and Agri-Food Canada projects 2014/15 canola production at 16 million tons, compared to 17.96 million in 2013/14, with 2014/15 soybeans at 4.9 million tons, compared to 5.198 million in 2013/14.
Corn was higher on short covering and fund buying. Unknown destinations bought 119,888 tons of old crop corn, but the supply remains large, which is mostly keeping commercial buyers on the sidelines. The improved weather around South America is also a negative for corn. Ethanol futures were lower. Agriculture and Agri-Food Canada estimates Canada’s 2014/15 corn crop at 13.1 million tons, compared to 14.194 million in 2013/14.
The wheat complex was lower on fund and technical selling. Saudi Arabia purchased 595,000 tons of hard wheat and 120,000 tons of soft wheat, with at least some of that coming from the U.S., along with supplies from Australia, Europe, and North and South America. Still, any spike in demand may be temporary due to the large world supply. Agriculture and Agri-Food Canada expects 2014/15 soft wheat production to be around 29.7 million tons, compared to 37.53 million in 2013/14, with 2014/15 durum at 5 million tons, compared to 6.505 million in 2013/14. Egypt issued a new wheat tender late Monday.
Cattle country was quiet on Monday afternoon with bids and asking prices not well defined although a few cattle have been priced around 150.00 to 151.00 in the South and 243.00 to 245.00 in the North. New showlists appear to be generally steady with last week with a few more ready cattle offered in Texas. The kill totaled 111,000 head, 6,000 below last week, and 14,000 smaller than last year.
Boxed beef cutout values closed firm on light to moderate demand and light offerings. Choice beef was up .78 at 238.04, and select was .81 higher at 237.06.
Chicago Mercantile Exchange live cattle contracts settled 50 points higher to 25 lower. The cattle ended mixed following strong losses early in the session. Firmness in boxed beef values put more support to the nearby contracts although it was hard to find traders willing or able to move to either side of unchanged. A bearish cattle on feed report weighed on futures. February settled .25 lower at 143.15 and April was up .50 at 140.55.
Feeder cattle ended mostly lower pressured by concerns that the higher placement number in the cattle on feed report may work to cool the overall tone of the market. Trade was quiet. January settled .27 higher at 170.97 and March was down .07 at 168.80.
Lean hogs settled 30 points higher to .80 lower. Lean futures were under pressure much of the session although a lack of trade volume kept most traders out of the February contract allowing more focus on late spring and summer price direction. February settled .80 lower at 85.57, and April was down .27 at 94.30.
Feeder cattle receipts at the Oklahoma National Stockyards totaled 9500 head on Monday. Compared to last week, feeder cattle and calves opened mostly steady. Demand was moderate to good. Yearling steers weighing 650 to 700 pounds ranged from 173.75 to 178.50. Heifers weighing 650 to 700 pounds brought 159.00 to 168.10.
There was slow hog market activity with light demand. Barrows and gilts in the Iowa/Minnesota direct trade closed .63 lower at 79.76, the West was down .52 at 79.46, and Eastern hogs were .65 lower at 77.27. Missouri direct base carcass meat price was steady from 71.00 to 72.00. Terminal hogs closed steady to an instance of 1.00 higher from 51.00 to 54.00 live.
The pork carcass value was up 1.66 at 89.77 FOB plant on a negotiated basis.
The discovery of PEDv in Canada increases the threat of death loss and reduced pork production throughout North America.
The long-term market trend as measured off the spot Feb lean hog contract continues to be negative while the short-term trend is no better than neutral with prices trading in a choppy sideways trading affair.
The hog slaughter was estimated at 406,000 head, 28,000 more than a week ago, but 1,000 less than last year.
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