Monday's Closing Grain & Livestock Futures Prices
May corn closed at $5.07 and 3/4, up 3/4 cent
May soybeans closed at $15.08 and 1/4, up 10 and 1/4 cents
May soybean meal closed at $496.90, up $6.30
May soybean oil closed at 42.62, down 30 points
May wheat closed at $7.00 and 1/4, unchanged
Apr. live cattle closed at $145.40, up 40 cents
Jun. lean hogs closed at $124.22, down 30 cents
Jun. crude oil closed at $100.84, up 24 cents
Jul. cotton closed at 92.23, down 102 points
May Class III milk closed at $22.57, down 13 cents
Jun. gold closed at $1,299.00, down $1.80
Dow Jones Industrial Average: 16,448.74, up 87.28 points
For additional futures prices and charts click http://www.farms.com/markets
Market News Review
Soybeans were mixed on old crop/new crop spread trade. The near term supply remains tight and demand is strong, from both export and domestic buyers. New crop did see some pressure from market talk there could be increased soybean acres if corn planting continues to be delayed. As of Sunday, USDA reports 3% of soybeans planted, compared to the five year average of 4%. Soybean meal was higher and bean oil was lower on the adjustment of product spreads. Chinese soybean demand remains a question, and beans are watching South America’s harvest, with Brazil wrapping up and Argentina around halfway complete.
Corn was firm, taking the path of least resistance. Storms have delayed planting again in some areas and rain and cooler temperatures are expected during the early part of this week. Parts of the northern Cornbelt are monitoring soil temperatures very closely. According to USDA, 19% of corn is planted, compared to 5% a year ago and 28% on average, while 3% has emerged, compared to 2% last year and 6% on average. Ethanol futures were higher.
The wheat complex was mixed ahead of the weekly crop numbers. Eastern parts of Kansas and Oklahoma saw rain, but most of the Southern Plains remains dry and windy, and parts of the Plains also experienced severe weather this past weekend. Winter wheat in the Eastern Midwest, and for that matter wheat around the world, is in relatively good shape. For the winter crop, 18% has headed, compared to 26% on average, and 33% of the crop is called good to excellent, down 1% on the week, with another 34% rated poor to very poor, up 1%. For spring wheat, 18% is planted, compared to 30% on average and 5% has emerged, compared to 9% on average.
Cattle country was quiet on Monday afternoon following the distribution of this week’s showlists. Ready numbers appear to be smaller than last week, with only Kansas showing more fed steers and heifers. A few showlists have been priced around 148.00 in the South and 238.00 in the North. Some packers are believed to be very short bought, especially given Friday’s limited movement. Accordingly, we could see trade volume develop as early as midweek. The kill totaled 114,000 head, 11,000 more than last week, but 5,000 less than last year.
Boxed beef cutout values were steady to firm on light demand and offerings. Choice beef was up .34 at 233.17 and select was down .07 at 221.57.
Live cattle contracts on the Chicago mercantile Exchange settled 5 to 92 points higher supported by the bullish cattle on feed report released on Friday. Although it has been hard to draw renewed support into either the cash cattle or boxed beef complex, the expectation that beef values will firm over the next week helped to draw buyers into the market. New highs were set in several contract months. April settled .40 higher at 145.40 and June was up .05 at 136.82.
Feeder cattle settled 110 to 177 higher as aggressive buyer support flooded the feeder cattle complex. The expectation of tighter supplies through the rest of the year created new contract highs to be set in nearly all feeder futures. May settled 1.10 higher at 181.10 and August was up 1.72 at 186.35.
Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 7200 head. Compared to last week, feeder steers and heifers less than 800 pounds were mostly steady, steers over 800 pounds were 2.00 to 5.00 higher and heifers 1.00 to 3.00 higher. Stocker cattle and calves opened firm. 5 to 6 weight steer calves traded from 202.00 to 229.00 per hundredweight. 545 to 600 pound heifers from 185.00 to 198.00.
Lean hogs settled 42 points higher to 30 lower. Futures contracts backed away from early triple digit losses, but nearby contracts remained under pressure based on the uncertainty of drawing additional support back into the cash market. Higher pork values in the morning report limited selling pressure. May lean hogs settled .05 lower at 120.97 and June was down .30 at 124.22.
Barrows and gilts in the Iowa/Minnesota direct trade closed .63 higher with a weighted average of 112.33 on a carcass basis, the West was up .41 at 111.95, and in the East the market was down .39 at 108.77. The Missouri direct base carcass meat price closed steady from 105.00 to 107.00. Terminal hogs were 1.00 to 4.00 lower from 77.00 to 78.00.
The pork carcass cutout value was 2.28 higher at 118.41 FOB plant on Monday.
Although the last two weeks have been tough on the hog market and wholesale pork trade, seasonal odds heavily favor the development of tighter barrow & gilt supplies and stronger pork demand, especially basis retail cuts over the next 30-60 days.
Monday’s hog slaughter was estimated at 344,000 head, 71,000 more than last week’s holiday shortened kill, and 72,000 less than last year.
Click here to see more...