Wednesday's Closing Grain & Livestock Futures Prices
Jul. corn closed at $5.14, down 3 and 1/2 cents
Jul. soybeans closed at $14.46 and 1/4, down 13 and 1/4 cents
Jul. soybean meal closed at $474.90, down $2.60
Jul. soybean oil closed at 40.83, down 28 points
Jul. wheat closed at $7.37 and 3/4, down 1 and 1/4 cents
Jun. live cattle closed at $137.57, down 72 cents
Jun. lean hogs closed at $121.17, down $2.05
Jun. crude oil closed at $100.77, up $1.27
Jul. cotton closed at 92.55, down 143 points
May Class III milk closed at $22.89, up 19 cents
Jun. gold closed at $1,288.90, down $19.70
Dow Jones Industrial Average: 16,518.54, up 117.52 points
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Market News Review
Soybeans were lower on commercial, fund, and speculative selling. Planting conditions look generally good and there’s some talk of increased acreage in the Northern Plains. There’s also a lot of uncertainty about just how many cargoes of soybeans the U.S. will import between now and harvest. Past that – Argentina’s harvest activity is moving well at more than 60% complete. There were 176 contracts delivered against the May contract. Soybean meal and oil were lower, following beans. According to Reuters, Brazil’s ag minister expects 2014 soybean production to be 89 million to 90 million tons.
Corn was lower on fund and speculative selling. Parts of the Midwest will have made solid planting progress this week, but some northern areas remain too cool and wet. There’s some rain in the forecast for later this week and this weekend as well. Overall, grains and oilseeds are also getting ready for Friday’s USDA numbers. Ethanol futures were higher. According to the weekly EIA data, ethanol production for the week ending May 2 averaged 894,000 barrels per day, down 4,000 on the week and a six week low. Dow Jones Newswires reports India’s corn exports, especially to Southeast Asia, have increased due to the political issues in Ukraine. Zambia’s 2013/14 corn crop is projected at a record 3.35 million tons.
The wheat complex was mostly lower, with Chicago and Kansas City down on fund and technical selling. After the recent rally, the trade’s concerned about pricing U.S. supplies above the world market. Additionally, Russia has pulled back some troops in Ukraine, lessening fears over conflict, at least to some extent. Minneapolis was up, supported by the slow spring planting pace. DTN reports Libya bought 30,000 tons of wheat, believed to be Russian, and Jordan picked up 50,000 tons of milling wheat, believed to be from the Black Sea region. ANZ Bank projects 2013/14 Australian wheat exports at 19 million tons.
There was very little action in cattle country on Wednesday afternoon. A few scattered bids were reported at 144.00 in Kansas and Texas, and 237.00 on a dressed basis in Nebraska. If the asking prices of 148.00 plus in the South and 240.00 plus in the North remain firm significant trade volume could be delayed until Thursday or Friday. The kill was estimated at 120,000 head, the same as last week, but 3,000 less than last year.
Boxed beef cutout values were weak on light demand and moderate offerings. Choice boxed beef was down .75 at 227.15, and select was .30 lower at 213.26.
Live cattle contracts on the Chicago Mercantile Exchange settled 20 to 72 points lower. The early support through the live cattle futures complex did not last long. Little changed in the sense of technical or fundamental market factors, which allowed for some midweek contract positioning. There was some growing concern that the lack of momentum in beef values could lead to additional long term pressure. There was some profit taking and long liquidation. June settled .72 points lower at 137.57, and August was down .52 at 137.50.
Feeder cattle ended the session 45 to 112 lower. The session started out with aggressive buyer support stepping into the market. But that support quickly faded and markets turned lower on the lack of follow through interest in the market. There was some squaring of positions by traders due to price levels at near or record highs. May settled .45 lower at 183.02, and August was down .57 at 190.67.
Feeder cattle receipts at Ozark’s Regional Stockyards at West Plains, Missouri totaled 2938 head on Wednesday. Compared to last week, feeder steers were 2.00 to 4.00 lower with the exception of peewee steers under 350 pounds and they were 5.00 higher. Feeder heifers were steady to 3.00 higher. The demand was good on a moderate supply. Feeder steers medium and large 1 averaging 527 pounds traded at 218.97 per hundredweight. 421 pound heifers averaged 224.79 at West Plains.
Lean hogs settled 115 to 205 lower with only winter 2015 contracts higher. Triple digit losses were seen throughout the complex and additional pressure in the morning cash report sparked renewed concern that supplies may not significantly tighten over the near term to sustain price levels over $120 per hundredweight. May settled .82 lower at 115.22 and June was down 2.05 at 121.17.
There was slow to moderate hog market activity with light demand on Wednesday. Barrows and gilts in the Iowa/Minnesota direct trade closed .98 lower with a weighted average of 113.15, the West was down .49 at 113.24, and in the East there was no price comparison at 107.67. Missouri direct base carcass meat price closed steady from 94.00 to 95.00. Terminal hogs were steady to 2.00 higher from 73.00 to 80.00.
The pork carcass cutout value ended .32 lower at 111.97 FOB plant on a negotiated basis.
The six-to-10-day forecast, May 12-15 calls for above average temperatures along the East Coast, welcomed spring-like weather that should spark more outdoor activity and grilling plans.
Wednesday’s hog kill was estimated by USDA at 413,000 head, 2,000 more than last week and the same as last year.
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