Monday's Closing Grain and Livestock Futures Prices
Jul. corn closed at $4.77 and 1/4, down 6 and 1/4 cents
Jul. soybeans closed at $14.85 and 1/4, up 20 and 1/4 cents
Jul. soybean meal closed at $490.50, up $10.30
Jul. soybean oil closed at 40.42, down 33 points
Jul. wheat closed at $6.74 and 1/2, up 1/4 cent
Jun. live cattle closed at $139.40, up $1.50
Jun. lean hogs closed at $119.37, up 45 cents
Jun. crude oil closed at $102.61, up 59 cents
Jul. cotton closed at 89.15, down 67 points
Jun. Class III milk closed at $20.19, down 30 cents
Jun. gold closed at $1,293.80, up 40 cents
Dow Jones Industrial Average: 16,511.86, up 20.55 points
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Market News Review
Soybeans were higher on fund and commercial buying. Contracts were mixed early, but came back thanks to the tight supply and solid demand, sparked by the weekly export inspections report. According to USDA, 33% of soybeans are planted, compared to 38% on average, while 9% has emerged, compared to 11% on average. Soybean meal was higher and bean oil was lower on the adjustment of product spreads.
Corn was lower on fund and technical selling. Weather forecasts for this week generally look good for planting and development. Additionally, last week’s wet weather apparently didn’t set back planting as much as initially feared. USDA reports 73% of corn is planted, compared to 76% on average and 34% has emerged, compared to the five year average of 42%. Ethanol futures were lower.
The wheat complex was mostly higher, seeing a late bounce in Chicago and Kansas City. There was no real fresh news, so contracts pretty much took the path of least resistance. There’s at least some rain in the forecast for the Southern Plains and world conditions mostly look good. For the winter crop, 57% has headed, compared to 58% on average, while 29% of the crop is rated good to excellent, down 1% on the week. For spring wheat, 49% is planted, compared to 68% on average and 24% has emerged, compared to 40% on average.
It was predictably quiet in cattle country on Monday afternoon following the distribution of the new showlists. The fed cattle offering appears to be generally larger than last week, especially in Kansas. A few showlists have been priced around 147.00 to 148.00 in the South and 237.00 plus in the North. The kill was estimated at 118,000 head, 2,000 more than last week, but 7,000 smaller than last year.
Boxed beef cutout values are firm to higher on moderate demand and light to moderate offerings. Choice boxed beef is up 1.24 at 227.22, and select was .83 higher at 217.54.
Chicago Mercantile Exchange live cattle contracts settled 105 to 217 higher. Futures were able to shake off early market jitters, with aggressive triple digit gains. Boxed beef values were supportive, but those gains seemed to get very little attention with the main focus on the feeder cattle futures that posted limit gains in some contracts. June settled 1.50 higher at 139.40, and August was up 2.17 at 140.55.
Feeder cattle ended the session 117 to 300 points higher on news of the lighter than expected cattle placements into feedlots during April. May settled 1.17 higher at 188.47, and August was up 2.87 at 196.20.
Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 11,600 head. Compared to last week, feeder steers and heifers opened steady to firm on a very light test. Steer calves opened firm to 4.00 higher, with heifer calves trading steady to firm. Demand was very good for light weight calves going to grass.425 to 500 pound steer calves traded from 214.00 to 248.00 per hundredweight. 450 to 500 pound heifers’ brought 216.00 to 227.00.
Lean hog contracts settled 17 to 110 points higher. Futures saw wide price swings in the morning trade. The lack of high volume through the market early in the week allowed prices to be uncharacteristically shifted through the morning trade. Pork values showed some encouraging news in the morning report, but there still remains so much uncertainty about upcoming supply and demand for pork through early summer that most traders remain on the sidelines. June was up .45 at 119.37 and July was .42 higher at 125.67.
Barrows and gilts in the Iowa/Minnesota direct trade closed .34 higher at 109.24 weighted average on a carcass basis, the West was up .28 at 109.05, and Eastern markets closed at 104.88 without a price comparison due to being unreported for several days due to confidentiality. Missouri direct based carcass meat price is steady to 5.00 higher from 97.00 to 105.00. Barrows and gilts in the Midwest on a live basis were steady to 2.00 lower from 72.00 to 82.00.
The pork carcass cutout value is up .48 at 114.67.
Hog slaughter last week totaled 1.999 million head, down 0.8% from the week before and down 1.9% compared to last year. Packers continue to see more barrows and gilts than the March 1 H&P projected, let along the estimates of the most aggressive PED bulls.
Monday’s hog slaughter was estimated at 385,000 head, 8,000 less than last week, and down 27,000 from last year.