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Soybean Futures Prices Crash on Trade Sell Off.


Closing Grain and Livestock Futures
Dec. corn closed at $4.69 and 1/2, down 5 and 3/4 cents
Nov. soybeans closed at $14.52 and 1/2, down 34 and 1/4 cents
Oct. soybean meal closed at $428.10, down $15.40
Oct. soybean oil closed at 43.63, down 27 points
Dec. wheat closed at $6.46 and 1/4, down 1 cent
Oct. live cattle closed at $126.00, down 20 cents
Oct. lean hogs closed at $89.12, up $1.12
Oct. crude oil closed at $107.23, down $1.31
Dec. cotton closed at 82.75, up 4 points
Sep. Class III milk closed at $18.00, up 21 cents
Sep. gold closed at $1,389.90, down $22.10
Dow Jones Industrial Average: 14,930.87, up 96.91 points

For additional futures prices and charts click here

Market News and ReCap

Soybeans were sharply lower on fund and technical selling. The condition rating was down over the past week and the crop’s developing slowly, but there’s a slightly greater chance for rain in the weekend forecast. Past that – commodities and the broader market are keeping an eye on any new news regarding Syria. Soybean meal and oil were lower on spillover from beans and the fundamental implications of a large U.S. crop.

Corn was lower on technical and fund selling. The condition rating was down 3% over the past week and all major crop development categories are behind average, but, like beans, the trade expects better rainfall. Corn’s also looking at some fundamental concerns, while being very wary about a possible attack on Syria. Ethanol was mostly lower.

The wheat complex was mixed in consolidation trade. There was no real fresh news with world conditions looking good and the U.S. spring harvest going well, so contracts pretty much took the path of least resistance. South Korea bought 22,500 tons of U.S. wheat and Egypt picked up another 180,000 tons, 120,000 tons from Russia and 60,000 tons from Romania. Bangladesh is tendering for 50,000 tons of wheat.



Cattle country remained very quiet on Wednesday afternoon with just a few bids reported in the South at 121.00, for the most part bids and asking prices were poorly defined. A few of the showlists have been priced around 125.00 to 126.00 live and 198.00 plus dressed. The best guess is that significant trade will once again be delayed until sometime on Friday. The kill was estimated at 124,000 head, 2,000 more than last week, but 3,000 greater than last year.

Boxed beef cutout values were steady to firm on moderate to fairly good demand and moderate offerings. Choice beef ended the day .46 higher at 196.56, and select was up .21 at 182.13.

Chicago Mercantile Exchange live cattle contracts settled 7 to 20 points lower. Pressure in the grain markets once again impacted buyer support in the live cattle futures. Early losses were as much as 60 points, but buyers slowly stepped back into the market. There appeared to be little additional market direction on Wednesday, and that left most traders comfortable with the continued moderate pressure. October settled .20 lower at 126.00, and December was down .20 at 129.90.

Feeder cattle ended the session 15 points higher to 37 lower. The pressure in corn and soybean prices on Wednesday was not enough to draw buyers back to the market. Moderate pressure held across the live cattle futures contracts which created pressure in the lightly traded feeder cattle markets. September feeders ended .15 lower at 157.02, and October was also down .15 at 159.25.

Feeder cattle receipts at South Dakota Auctions last week totaled 10,789 head. Compared to the previous week, feeder steers were 3.00 to 5.00 higher, with a few instances of steady to 4.00 higher on weights over 900 pounds. Feeder heifers trended 4.00 to 8.00 higher, with a few 7 to 850 weights 10.00 higher. There was a very good demand for all weights of calves and yearlings. 971 feeder steers with an average weight of 879 pounds traded at 156.87 per hundredweight. 795 heifers weighing 878 averaged 148.62.

Lean hogs settled 10 to 112 points in the black. The moderate to strong gains held in the nearby contracts while pressure was seen through the far deferred contracts. The short term supply situation and expectations that lean hog futures are short bought drew price support to the October futures. The moderate to sharp losses in grain prices pressured deferred contracts based on the potential production increases. October settled 1.12 higher at 89.12, and December was up .87 at 85.85.

There was slow hog market activity with light demand on Wednesday. Barrows and gilts in the Iowa/Minnesota direct trade closed 1.08 higher on a carcass basis with a weighted average of 90.38, the West was 1.10 higher at 90.05, and the East was up .50 at 85.56. Missouri direct base carcass meat price closed steady from 81.00 to 82.00. Terminal hogs closed 1.00 higher to 1.00 lower from 56.00 to 66.00 live.

The pork carcass value FOB Omaha was .09 higher at 94.89 on a negotiated basis.

 DTN reports sow kills over the past five weeks have been running well below year ago levels and contrary to the five year average. It looks like pork producers are definitely shifting into expansion gear.

Hog slaughter was estimated at 432,000 head, the same as last week, but 4,000 less than last year.

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