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Soybean Futures Prices Crash Lower On SA Crop.

Closing Grain and Livestock Futures
Mar. corn closed at $4.25, up 1 cent
Mar. soybeans closed at $12.80 and 1/2, down 36 cents
Mar. soybean meal closed at $416.50, down $18.00
Mar. soybean oil closed at 38.10, up 36 points
Mar. wheat closed at $5.62 and 1/4, down 1 and 1/4 cents
Feb. live cattle closed at $141.55, up $1.20
Feb. lean hogs closed at $85.97, down 20 cents
Feb. crude oil closed at $94.99, up 62 cents
Mar. cotton closed at 88.13, up 133 points
Feb. Class III milk closed at $22.40, up 48 cents
Mar. gold closed at $1,242.80, down $10.30
Dow Jones Industrial Average: 16,414.44, down 44.12 points

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Market News Update

Soybeans were sharply lower, hitting two month lows on fund and commercial selling. Forecasts for South America are improving, with rain and cooler temperatures for some key growing areas of Argentina and Brazil. Past that – there was no fresh supportive news and there’s even been more talk of export cancellations. Soybean meal followed beans sharply lower and bean oil was up modestly on the adjustment of product spreads. The Ministry of Customs in China reports 2013 soybean imports were 63.375 million tons, up 8.55% from 2012, with Brazil accounting for 31.809 million tons and the U.S. making up 22.234 million tons of the total. Soybean oil purchases were 1.158 million tons and soybean meal imports were 16,682 tons. Soybean meal sales by China were down 13% on the year at 1.070 million tons.

Corn was mixed in consolidation trade. Corn’s also watching the weather around South America, especially the forecasted rainfall for Argentina and southern Brazil. Fundamentally, the trade’s looking at solid domestic demand, but a fairly large available supply and slow export demand. Ethanol futures were mixed. Ukraine’s Ag Ministry states corn exports since the start of the marketing year are 11.33 million tons, making up more than half of total grain sales so far this year. Safras & Mercado estimates Brazil’s 2013/14 corn crop at a combined 75.6 million tons, 28.2 million in summer and 47.4 million for second crop, compared to 82.1 million tons in 2012/13 due to smaller planted area. According to China’s Ministry of Customs, corn imports for 2013 were 3.265 million tons, down 37.3% on the year, with the U.S. conspicuous by its absence in the list of suppliers.

The wheat complex was lower on fund and technical selling. There was also no fresh supportive news for wheat, so contracts are pretty much just took path of least resistance – mostly firm early, selling off late. Japan bought 49,999 tons of western red spring wheat from Canada and, in any event, the world supply is ample. Tunisia picked up optional origin wheat: 100,000 tons of soft milling wheat and 109,000 tons of durum, and South Korea’s Feed Leaders Committee purchased 118,000 tons of optional origin feed wheat. Ukraine’s Ag Ministry reports grain exports since the start of the marketing year July 1 are 20.5 million tons, 34% more than this time last year, with wheat accounting for 6.94 million tons, 5.62 million of that milling quality. According to China’s Ministry of Customs, 2013 wheat imports were 5.507 million tons, 49.3% more than 2012, with the U.S. accounting for 3.820 million tons.

The cattle trade remained unestablished on Tuesday afternoon with just a few starter bids on the table in Kansas at 141.00 on the live basis. Some asking prices are around 144.00 to 145.00 in the South and 232.00 plus in the North. Significant cattle trade is not expected before Thursday or Friday according to DTN. The kill totaled 119,000 head, 1,000 smaller than last week and 8,000 less than last year.

Boxed beef cutout values end the day sharply higher again on moderate demand and very light offerings. Choice boxed beef was up 3.16 at 239.72, and select was up 2.70 at 237.15.

Live cattle contracts on the Chicago Mercantile Exchange settled 40 to 120 points higher. February and April contracts were supported by strong boxed beef values in the morning report. DTN says the aggressive nature of the market suggests continued support to develop through the week. February settled 1.20 higher at 141.55, and April was up .92 at 140.22.

Feeder cattle contracts settled 20 points lower to 62 higher. Feeder futures were bookended by narrow losses on both the first and last contract of the complex. But the lack of activity in those contracts was used as the reason for the separation from the gains seen in the rest of the spring contract price levels, although all contracts closed off the day’s highs. January settled .20 lower at 169.80 and March was up .40 at 168.32.

Feeder cattle receipts at the Joplin Regional Stockyards on Monday totaled 14,064 head. Compared to last week, steers and heifers were steady. The demand was good and the supply was heavy. Producers are taking advantage of the break in the weather and high prices to market their caves and yearlings. The wind and sunshine has dried up corrals, and lots along with pasture lanes making them useable again. Feeder steers medium and large 1 averaging 627 pounds brought 185.61 per hundredweight. 621 pound heifers averaged 165.24 at Joplin.

Lean hog futures contracts settled 20 points lower to 47 higher and February held light to moderate losses through the session. The lack of support through the complex seemed to be evidence of traders focusing more on actively traded markets through the rest of the spring and summer contracts. Some support to lean futures came from aggressive live cattle futures. February settled .20 lower at 85.97 and April was .47 higher at 92.37.

There was slow hog market activity with light demand on Tuesday. Barrows and gilts in the Iowa/Minnesota direct trade closed .70 higher at 78.91 on a carcass basis, the West was up .72 at 78.78, and the East was not reported due to confidentiality. Missouri direct base carcass meat price is steady from 71.00 to 73.00. Terminal hogs are steady to 1.00 lower from 51.00 to 56.00 live.

Pork value FOB plant was down .77 at 87.38 in the afternoon report.

Hog slaughter last week totaled 2.263 million head, up 2.6% from 2013. Though some of the bump may have been tied to catch-up marketing in the wake of the previous week’s weather disruption, the total seems considerably more than the Dec. 1 weight breakdown predicted.

Tuesday’s hog slaughter is estimated at 430,000 head, 5,000 more than last week and last year.


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