Tuesday's Closing Grain and Livestock Futures Prices
Jul. corn closed at $4.73 and 1/2, down 3 and 3/4 cents
Jul. soybeans closed at $14.69 and 3/4, down 15 and 1/2 cents
Jul. soybean meal closed at $486.70, down $3.80
Jul. soybean oil closed at 40.07, down 35 points
Jul. wheat closed at $6.70 and 1/2, down 4 cents
Jun. live cattle closed at $138.75, down 65 cents
Jun. lean hogs closed at $118.60, down 77 cents
Jun. crude oil closed at $102.44, down 17 cents
Jul. cotton closed at 89.00, down 15 points
Jun. Class III milk closed at $20.27, up 8 cents
Jun. gold closed at $1,294.60, up 80 cents
Dow Jones Industrial Average: 16,374.31, down 137.55 points
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Market News Review
Soybeans were lower on profit taking and technical selling. Contracts were up in the overnight and early in the regular session thanks to the tight near term supply and China buying 110,000 tons of new crop U.S. soybeans, via an optional origin purchase. However, the market is overbought and due for a correction. Soybean meal and oil followed soybeans lower. China sold 243,000 tons of the planned 300,000 tons from state reserves and according to Reuters, Beijing is setting a domestic price target for soybeans at $770 per ton.
Corn was lower on fund and technical selling. Nationally, planting is only slightly behind average, but areas of the northern Midwest continue to see substantial delays. Still, at this point, weather looks good for most of the Cornbelt and the trade is expecting a big crop. Ethanol futures were lower.
The wheat complex was lower with Chicago leading the way down on fund and technical selling. That said – the winter wheat condition rating declined again last week and forecasts for the Southern Plains look mostly hot and dry. Also, there are continued planting delays in the Northern Plains. Lebanon bought 30,000 tons of milling wheat from Romania.
Feedlot country was at a standstill on Tuesday afternoon with bids and asking price poorly defined. A few asking prices are around147.00 to 148.00 in the South and 237.00 plus in the North. Trade volume could develop by midweek if packers want to finish procurement chores ahead of the long holiday weekend. On the other hand significant trade could be delayed until late in the week. The kill totaled 118,000 head, 1,000 below last week and 8,000 smaller than last year.
Boxed beef cutout values were higher on moderate demand and light to moderate offerings. Choice beef was up 3.01 at 230.23, and select is up 1.49 at 219.03.
Live cattle contracts settled 30 to 65 lower on The Chicago Mercantile Exchange, pressured by profit taking and long liquidation. Position taking following Monday’s rally appeared to be the main feature of Tuesday’s session. June settled .65 lower at 138.75, and August was down .45 at 140.10.
Feeder cattle ended 27 to 82 points in the red with only the May contract higher. Like the live cattle futures the feeder pit experienced profit taking and long liquidation. May settled .57 higher at 189.05 and August was down .27 at 195.92.
Feeder cattle receipts at the Joplin Regional Stockyards on Monday totaled 6499 head. Compared to last week feeder cattle and calves weighing over 400 pounds sold steady to 3.00 higher with the exception of many larger groups of 700 to 850 pound yearling steers which traded 6.00 to 8.00 higher with help from Northern interests. All pee-wee calves under 400 pounds sold 7.00 to 10.00 higher with little regard for quality. Feeder steers medium and large 1 averaging 876 pounds averaged 176.17. 624 pound heifers brought 188.22.
Lean hogs settled 50 higher to 77 lower. The pressure in the nearby June and July contracts was offset by the development of buyer interest through the deferred futures. Buyers were looking at potential fundamental and investment support through the last half of the year. June settled .77 lower at 118.60 and July was down .50 at 125.17.
Barrows and gilts in the Iowa/Minnesota direct trade closed 2.08 higher with a weighted average of 111.32 on a carcass basis, the West was up 1.73 at 110.77, and the East was not reported due to confidentiality. The Missouri direct base carcass meat price was steady to 3.00 lower from 97.00 to 102.00. Barrows and gilts at Midwest markets on a live basis were steady with an instance of .50 higher from 72.00 to 82.00.
The pork carcass cutout value was up 2.04 at 116.71. Bellies and picnics were responsible for most of the gain in value.
Until weekly hog kills stop exceeding market expectations, traders may keep questioning whether or not the premiums in the June through August contracts can be realized.
Tuesday’s hog slaughter was estimated at 412,000 head, 3,000 less than last week and last year.
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