Thursday's Closing Grain and Livestock Futures
Dec. corn closed at $4.43, up 1/4 cent
Nov. soybeans closed at $12.93 and 1/4, up 16 and 3/4 cents
Dec. soybean meal closed at $413.00, up $9.20
Dec. soybean oil closed at 41.12, down 25 points
Dec. wheat closed at $6.86, up 4 and 1/2 cents
Oct. live cattle closed at $129.15, down 15 cents
Dec. lean hogs closed at $88.45, down 35 cents
Nov. crude oil closed at $100.67, down $1.62
Dec. cotton closed at 83.82, up 66 points
Nov. Class III milk closed at $18.29, up 1 cent
Oct. gold closed at $1,322.70, up $40.70
Dow Jones Industrial Average: 15,371.65, down 2.18 points
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Market News
Soybeans were higher on commercial, technical and fund buying. Beans are watching further harvest delays in some key growing areas that could damage quality and yield if they last too much longer. USDA has officially canceled the October 11 crop reports and the next estimate is scheduled for November 8. Informa Economics is expected to have new crop estimates Friday. Soybean meal was up and bean oil was down on the adjustment of product spreads.
Corn was steady to fractionally higher, following beans and wheat. Corn’s also looking at the same harvest delays as beans, hoping for a warmer, drier weather pattern so producers can get back in the fields. Wire service reports say China has purchased 1.2 million tons of U.S. corn this month but that had been rumored for a while and contracts closed well below session highs. Ethanol futures were lower. Kenya’s Ministry of Agriculture says it plans to import 112,500 tons of corn between September and December with 76,500 of that set to come from the East Africa Community trade bloc.
The wheat complex was higher on technical and fund buying, in addition to the lower dollar. There’s a chance for another freeze in Argentina early next week and the trade’s assessing monsoon damage to India’s crop. Japan bought U.S. milling wheat this week, along with wheat from Canada and Australia; Tokyo picked up a total of 112,031 tons – 33,682 tons western red spring, 32,298 tons Australian standard white, 25,757 tons western white, and 20,294 tons hard red winter. Libya is tendering for 50,000 tons of optional origin milling wheat and South Korea is in the market for 23,000 tons of U.S. milling wheat. According to Russia’s federal statistics agency, grain stocks as of October 1 were 34.8 million tons, down 2.6% on the year, with on farm stocks up 11.2% at 24.2 million and off farm supplies down 24.1% at 10.6 million tons.
A fairly active cattle trade developed in Nebraska and Iowa on Thursday with dressed prices sharply higher than last week. Most dressed sales were marked at 204.00, $5.00 to 6.00 higher than a week ago. Live sales in the North were from 129.00 to 131.00, fully 2.00 higher. The South remained slow after Wednesday’s business. The fact that cattle buyers moved as early as Wednesday and Thursday to procure slaughter needs suggests that they are very close to the knife. Furthermore the accelerated timing may be related to the resumption of government work. It is certainly possible that many packers and meat buyers have been living hand to mouth through the uncertain days of October. DTN says given that probability, we may be seeing a rush to restock live and product inventories. USDA estimated the Thursday slaughter at just 116,000 head.
Choice boxed beef closed at 196.03, and select was at 181.72. A trend comparison cannot be made.
Chicago Mercantile Exchange live cattle contracts settled 15 to 147 points lower. The October contract saw impressive gains early on Thursday supported by the higher cash cattle market. But the market closed significantly lower. DTN said traders seemed to be spooked by historical highs’ and suggestions that the board had built in too much bullishness, too early. October settled .15 lower at 129.15, and December was down 1.47 at 131.77.
Feeder cattle ended the session 15 to 117 points lower. The market bounced higher in the morning following the aggressive moves in live cattle contracts and the inability to move corn markets in either direction. But the futures turned lower when the support from the live pit evaporated. October settled .15 lower at 165.85, and November was down .82 at 166.90.
Feeder cattle receipts at the Springfield, Missouri Livestock Marketing Center totaled 1725 head on Wednesday. Compared to last week, steer and heifers trended steady to 2.00 higher. Holsteins were not well tested. Demand was moderate to good, the supply was moderate. Feeder steers, medium and large 1 weighing 500 to 600 pounds ranged from 175.00 to 187.00 per hundredweight. 6 to 7 weights brought 165.00 to 182.00. Heifers weighing 500 to 600 pounds traded from 150.00 to 160.00. A package of heifers weighing 739 pounds brought 146.50.
Lean hogs settled 12 to 52 points lower. The aggressive buyer support during the early trade eroded near midday. Pressure developed across the deferred contracts as traders are uncertain just how much longer term-support will develop in mid-2014. December settled .35 lower at 88.45, and February was down .12 at 90.52.
Barrows and gilts in the Iowa/Minnesota direct trade closed at 91.37 on a carcass basis, the West was at 91.16, and in the East the market was at 89.51. Price comparisons were not available since the last trading day reported was September 30th. Missouri direct base carcass meat price was steady from 82.00 to 83.00. Terminal hogs were 1.00 higher to 2.50 lower from 58.00 to 66.00.
The pork carcass value FOB plant ended at 96.17.
With the House, Senate, and the White House finally on the same page, the resumption of full government services and the raising of the debt limit should help to bolster general market confidence.
USDA estimated the Thursday hog kill at 433,000 head.
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