Monday's Closing Grain and Livestock Futures Prices
Jul. corn closed at $4.44 and 1/2, down 8 and 3/4 cents
Jul. soybeans closed at $14.24 and 3/4, up 9 cents
Jul. soybean meal closed at $455.80, down $3.40
Jul. soybean oil closed at 40.68, up 55 points
Jul. wheat closed at $5.79 and 3/4, down 5 and 1/2 cents
Jun. live cattle closed at $148.15, up 60 cents
Jul. lean hogs closed at $128.30, up 47 cents
Aug. crude oil closed at $106.17, down 66 cents
Jul. cotton closed at 87.52, down 64 points
Jul. Class III milk closed at $21.88, up 33 cents
Jun. gold closed at $1,318.00, up $1.80
Dow Jones Industrial Average: 16,937.26, down 9.82 points
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Agri Markets News Review
Soybeans were higher on fund and commercial buying. After a few sessions away, commercials are back in old crop, at least for now, ahead of next week’s USDA quarterly stocks and acreage numbers. New crop’s keeping an eye on any flood damage from the past week. As of Sunday, USDA reports 95% of U.S. soybeans are planted, compared to 94% on average, with 90% emerged, compared to 87% on average, and 72% of the crop is rated good to excellent, down 1% on the week. Soybean meal was down and oil was up on the adjustment of product spreads.
Corn was lower on fund and technical selling. There was more heavy rainfall over the weekend in some areas, but that’s seen as less of a factor for corn than it is for beans. Still, there has been some damage, we just don’t know how much. Corn’s also getting ready for the USDA numbers out next week. According to USDA, 74% of corn is in good to excellent condition, down 2% on the week. Ethanol futures were lower.
The wheat complex was mixed on consolidation trade and the higher dollar. The poor condition and yield numbers for hard red winter are a known and soft red winter looks good. For the winter crop, 96% has headed, compared to 94% on average, with 33% harvested, compared to 31% on average, and 30% in good to excellent shape, unchanged from last week. For the spring crop, 98% has emerged and 10% has headed, with 71% rated good to excellent, down 1% from a week ago. Saudi Arabia bought a total of 780,000 tons of wheat from various origins, including North America (660,000 tons 12.5% protein hard wheat and 120,000 tons of 11.0% protein soft wheat). Pakistan picked up 55,000 tons of Black Sea origin wheat. Egypt purchased 120,000 tons of wheat from Romania and 60,000 tons of wheat from Russia.
Cattle country was typically quiet on Monday with bids and asking prices not well defined, an early guess by DTN is that some showlists will be priced around 152.00 in the South and 240.00 plus in the North. Significant trade volume will probably be delayed until the second half of the week. The new offering appears to be generally smaller than last week. The cattle kill totaled 115,000 head, 2,000 more than last week, and 3,000 above last year.
Boxed beef cutout values were higher in the afternoon report on moderate demand and light to moderate offerings. Choice beef was up 1.88 at 242.77, and select was 3.98 higher at 237.35.
Live cattle contracts on the Chicago Mercantile Exchange settled 60 to 130 points higher. The strong gains held in the deferred issues as traders tried to work the lighter cattle placement numbers through the system. The main uncertainty seen through the complex is the overall demand for beef through the end of the year and in early 2015. Currently the market seems to be working on the assumption that the elevated prices will not have a significant shift in consumer demand or buying habits. But this could easily change and is likely to keep the market extremely volatile not only in the short term but could affect the market direction for months to come. June settled .60 higher at 148.15 and August was up .60 at 146.92.
Feeder cattle receipts at the Oklahoma National Stockyards totaled 7,000 head. Compared to last week, steers and heifers were mostly steady on a light test. Early morning rain showers brought some much needed moisture to the Western area of the state, and up to 3 inches of rain was reported in Oklahoma City. Feeder steers medium and large 1, calves weighing 575 to 600 pounds brought 230.50 to 249.00. 550 to 600 pound heifers traded from 220.00 to 228.00.
Feeder cattle contracts settled 112 to 162 higher. Strong initial gains developed through the feeder cattle market as traders focused on the fact total cattle placements were well below last year’s levels in the monthly on feed report released on Friday. August settled 1.02 higher at 207.90 and September was up 1.12 at 209.30.
Lean hogs settled 40 to 105 points higher with only August lower. The trade remained sluggish for much of the session with initial buyer support eroding from session highs as the market seemed to settle within a narrowly mixed trading range. The focus of the early week trade is expected to counter uncertain supply levels of hogs available to the market with summer pork demand.. This could keep the market stuck in a narrow trading range through early week trade. July settled .47 higher at 128.30, and August was down .17 at 128.97.
Barrows and gilts in the Iowa/ Minnesota direct trade closed 1.41 higher at 124.18 weighted average on a carcass basis, the West was up 1.59 at 123.79, and the East was not reported due to confidentiality. Missouri direct base carcass meat price closed 2.00 to 4.00 higher from 112.00 to 118.00. Barrows and gilts at Midwest markets were steady with an instance of 1.00 to 2.00 higher live from 78.00 to 84.00.
The pork carcass cutout value was up 2.28 at 129.76 FOB plant. All cuts were higher but ribs were up over 12.00.
The ability to move pork cutout values strongly higher through the last week is once again creating some optimism through the complex. Traders are expected to look for additional market support and potential growth in pork demand surrounding the Fourth of July holiday season.
The Monday hog slaughter was estimated at 379,000 head the same as last week, but 14,000 less than last year.
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