Monday's Closing Grain & Livestock Futures Prices
Jul. corn closed at $4.99 and 1/2, down 8 cents
Jul. soybeans closed at $14.65 and 1/4, down 21 and 3/4 cents
Jul. soybean meal closed at $478.20, down $9.10
Jul. soybean oil closed at 40.98, down 20 points
Jul. wheat closed at $7.15, down 7 and 1/2 cents
Jun. live cattle closed at $137.65, down 40 cents
Jun. lean hogs closed at $119.00, down $1.17
Jun. crude oil closed at $100.59, up 60 cents
Jul. cotton closed at 91.30, down 106 points
May Class III milk closed at $22.74, up 3 cents
Jun. gold closed at $1,295.80, up $8.20
Dow Jones Industrial Average: 16,695.47, up 112.13 points
For additional futures prices and charts click http://www.farms.com/markets
Market News Review
Soybeans were lower on fund and technical selling. Brazil’s harvest is wrapping up and Argentina’s at about 60%, and while export inspections were good, they weren’t great. There was also at least some delayed reaction to last week’s very large USDA production number. As of Sunday, USDA reports 20% of soybeans are planted, compared to the five year average of 21%. Soybean meal and oil followed soybeans lower.
Corn was lower on fund and technical selling. Corn planting made some progress, but some areas did get a major weather disruption over the weekend and several key states are considerably behind average. According to USDA, 59% corn is planted, compared to 58% on average, with 18% emerged, compared to the five year average of 25%. Ethanol futures were lower. The Buenos Aires Grain Exchange reports 29% of Argentina’s corn crop is harvested.
The wheat complex was lower on fund and technical selling. There was some rain in the Plains this weekend, but once again, it missed a lot of the driest growing areas. USDA states that for the winter crop, 44% has headed, compared to 46% on average, with 30% of the crop rated good to excellent, down 1% on the week. For spring wheat, 34% of the crop is planted, compared to 53% on average, while 12% has emerged, compared to 27% on average. Jordan is tendering for 100,000 tons of milling wheat and Iraq is in the market for 50,000 tons of wheat, with both tenders optional origin. According to Russia’s APK-Inform, 2014 grain production should be up 0.5% on the year at 93 million tons, 52 million of that wheat.
The main item of business in cattle country on Monday was the distribution of the new showlists. The new offering appears to be mixed, larger in the north, near steady in Texas, but significantly smaller in Kansas. Overall, the supply of ready steers and heifers appears to be about steady with last week. Some showlists are priced around 148.00 in the South and 240.00 in the North. The cattle kill is estimated at 116,000 head, 4,000 less than last week and down 7,000 from 2013.
Boxed beef cutout values were firm on moderate demand and light offerings. Choice beef was up .56 at 223.82, and select was .43 higher at 212.64.
Live cattle contracts on the Chicago Mercantile Exchange closed narrowly mixed. Traders focused on the strength in the feeder cattle pit and stability seen in boxed beef values. The deferred contracts gained the most support as noncommercial interest focused on longer term demand potential in the beef market. June settled .40 lower at 137.65, and August was down .12 at 138.07.
Feeder cattle ended 2 to 57 points higher as aggressive buyer support stepped back into the feeder futures market. Traders looked at the softness in grain markets and potential to draw additional support into boxed beef values through the end of the month. This could help to start increased activity to develop later in the week. May settled .02 higher at 184.6- and August was up .50 at 191.87.
Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 8700 head. Compared to last week feeder steers and heifers opened steady to 3.00 higher. Steer and heifer calves were firm in a light test. Trading was active on very good buyer demand. Yearling steers weighing 650 to 675 pounds traded from 198.00 to 200.00. Feeder heifers 725 to 775 pounds brought 172.85 to 174.75.
Lean hogs settled 70 points higher to 125 lower. The inability to hold support at $120 per hundredweight appeared to gain momentum. This could draw additional pressure from both commercial and investment traders who have been watching for additional market direction. May hogs settled 1.25 lower at 113.42, and June was down 1.17 at 119.00.
There was slow hog market activity with light to moderate demand. Barrows and gilts in the Iowa/Minnesota direct trade closed 2.42 lower with a weighted average of 108.35, the West was down 2.19 at 108.30, and the East at 105.45 had no price comparison. Missouri direct base carcass meat price was steady from 97.00 to 99.00. Terminal hogs were steady from 73.00 to 80.00.
The pork carcass cutout value was up 2.09 at 113.82 FOB plant. Bellies, ribs and loins were all significantly higher.
Hog slaughter and pork production this spring continues to be more generous than most anticipated. Last week’s hog kill totaled 2,016,000 head, virtually even with the previous week and “only” 3.3% smaller than last year. This total again agrees with the March 1 hog and pig report, which was initially criticized for understating the devastation of PEDv.
The Monday hog kill at 393,000 head, is 7,000 more than last week, but 6,000 less than last year.
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