Friday's Closing Grain and Livestock Futures Prices
Mar. corn closed at $4.33 and 1/4, up 2 and 3/4 cents
Jan. soybeans closed at $13.39, up 12 cents
Jan. soybean meal closed at $446.60, up $4.50
Jan. soybean oil closed at 39.44, up 11 points
Mar. wheat closed at $6.13 and 1/2, up 2 and 3/4 cents
Dec. live cattle closed at $132.52, up 72 cents
Feb. lean hogs closed at $86.25, down 12 cents
Feb. crude oil closed at $99.32, up 28 cents
Mar. cotton closed at 83.15, down 18 points
Jan. Class III milk closed at $19.63, up 18 cents
Dec. gold closed at $1,205.10, up $10.10
Dow Jones Industrial Average: 16,221.14, up 42.06 points
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Market News and Review
Soybeans were higher on technical and commercial buying. The near term supply remains tight and demand continues to look solid from both the domestic and export markets. Parts of South America are expected to see more hot and dry weather, with a chance for rain around Christmas. Soybean meal and oil were higher, following the lead of beans.
Corn was higher on technical buying and short covering, along with spillover from beans. China has reportedly rejected 545,000 tons of U.S. corn this month due to an unapproved GMO trait with U.S. and Chinese officials meeting to try and resolve the issue. Still, domestic commercial demand is good and even if China doesn’t want that corn, someone else will probably take it. Japan bought 180,000 tons of new crop U.S. corn Friday. Ethanol was mostly higher.
The wheat complex was higher on short covering and technical buying. Brazil reportedly bought 50,000 tons of U.S. hard red winter recently and overall exports are running well ahead of last year’s pace. That said – with a large world crop, wheat may have to sell off further to see sustained interest. Chicago did hit an 18-month low early in the session.
Cattle country was quiet on Friday and other than a few cleanup deals; business was essentially done for the week. Asking prices for the few cattle remaining on the showlists were around 132.00 in the South and 210.00 in the North. Cattle traded in the South this past week at 130.00, 1.00 lower than the previous week. Northern cattle were steady to a 1.00 higher on a dressed basis from 207.00 to 208.00 and 130.00 to 131.00 live. The weekly cattle slaughter was estimated at 613,000 head, 5,000 above the previous week, but 19,000 less than last year.
Boxed beef cutout values were weak to lower on very light to light demand and light offerings. Choice beef was down .92 at 196.79, and select was .35 lower at 188.43.
Live cattle contracts settled 30 to 72 points higher on Friday. Futures settled off of their highs for the day but still closed with significant gains following end of the week commercial buying interest stepping back into the market. Steady to higher cash cattle trade in Nebraska seemed to be offsetting any pressure in both the South and in boxed beef values. December settled .72 higher at 132.52, and February was up .92 at 133.90.
Feeder cattle ended the session 15 to 45 points higher. Light trade was evident in the feeder cattle complex which was not unexpected given traders preparing for the upcoming holiday week. The gains in live cattle drew buyers off of the sidelines. January settled .17 higher at 166.97 and March was up .37 at 166.92.
Feeder cattle receipts at Missouri Auctions this week totaled 43,104 head. Compared to last week, feeder steers weighing less than 700 pounds sold 2.00 to 6.00 higher, steers over 700 pounds and all weights of heifers sold unevenly steady from 3.00 lower to 3.00 higher. The supply was heavy, particularly in Southern Missouri, after several auction barns in that area were closed or moved very few cattle last week due to the winter storm. 1672 feeder steers medium and large 1 averaging 623 pounds averaged 180.86 per hundredweight. 837 heifers weighing 627 brought 158.69.
Lean hogs settled mostly 20 to 35 points higher with only the front months showing slight losses. Futures were under pressure much of the session although the surge higher in live cattle futures drew buyers back into the hog markets. The gains remained light in sluggish activity. February settled .12 lower at 86.25, and April was down .02 at 91.17.
Barrows and gilts in the Iowa/Minnesota direct trade closed .27 lower with a weighted average on the carcass basis at 76.35, the West was down.58 at 76.00, and Eastern hog markets were not reported due to confidentiality. Missouri direct base carcass meat price is steady from 73.00 to 74.00. Terminal hogs were fully steady from 51.00 to 56.00.
The pork value was down 1.07 FOB plant at 85.39.
Cash hog prices are unable to stabilize even though packers are focusing on strong procurement schedules at the end of this week. The next two weeks will see holiday-reduced procurement runs with plants being dark for the next two Wednesday’s. This is likely to create additional market-ready hogs available for packers picking, and could further limit cash spending.
The weekly hog kill was estimated at 2,353,000 head, 25,000 more than last week and 5,000 less than a year ago.
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