Thursday’s Closing Grain and Livestock Futures
Mar. corn closed at $3.80, down 1 cent
Mar. soybeans closed at $9.91, down 18 and 1/4 cents
Mar. soybean meal closed at $326.70, down $8.80
Mar. soybean oil closed at 32.99, up 17 points
Mar. wheat closed at $5.32 and 3/4, down 5 cents
Feb. live cattle closed at $154.20, down $1.55
Feb. lean hogs closed at $75.62, down 40 cents
Feb. crude oil closed at $46.25, down $2.23
Mar. cotton closed at 59.49, up 51 points
Feb. Class III milk closed at $14.48, up 12 cents
Feb. gold closed at $1,264.80, up $30.30
Dow Jones Industrial Average: 17,320.71, down 106.38 points
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Market News Recap
Soybeans were lower on fund and commercial selling. There are some areas of concern in northern Brazil, but aside from that, South American growing conditions look good. It was another solid week for the export numbers, with sales and shipments both more than what’s needed to meet USDA projections. The NOPA December crush numbers were bearish, coming in below expectations at 165.4 million bushels. Soybean meal was lower and bean oil was higher on the adjustment of product spreads, with oil gaining additional support from a lower than expected NOPA stocks figure.
Corn was lower on fund and technical selling. Japan bought 127,000 tons of 2014/15 U.S. corn and weekly export sales were solid. However, physical shipments continue to move out slowly and while demand is strong, there’s plenty of corn available. Corn currently appears to be searching for direction. Ethanol futures were lower.
The wheat complex was mostly lower on fund and technical selling, along with the higher dollar. There are more signs that Russia will restrict wheat exports, even if it is an informal restriction. Still, demand for U.S. wheat is slow, reflected again in this week’s export report, and the recent strength in the dollar has likely had at least some impact. Japan bought 54,200 tons of food wheat from the U.S., along with 61,400 tons from Canada and 31,300 tons from Australia.
Packer inquiry into the cattle was limited on Thursday afternoon with bids no better than 164.50 basis the South and 263.00 in the North. Private sources reported a few cattle sold in Texas at 164.00. If packers need to find more cattle it probably will not be until Friday. Some asking prices appear to be around 165.00 to 168.00 in the South and 266.00 to 268.00 in the North. The kill was estimated at 112,000 head, 4,000 more than last week, but down 8,000 from last year.
Boxed beef cutout values were weak on choice and firm on select, with light to moderate demand and moderate offerings. Choice beef was down .93 at 262.88, and select was up .39 at 254.07.
Chicago Mercantile Exchange live cattle contracts settled 42 to 155 lower after trading narrowly mixed for much of the session with traders concentrating on the lack of additional direction in the market. The strong pressure in the feeder cattle futures had very little impact on the market until lower beef values at midday started to crack the light support that had held in nearby contract months. The weakness of the market is likely to focus on additional market softness through the end of the week. February settled 1.55 lower at 154.20 and April was down 1.52 at 152.80.
Feeder cattle contracts ended the day 365 to 450 points lower. The weakness in the cash cattle trade as well as additional outside market direction led to further erosion in the complex. The cattle market was once again pounded by long liquidation and technical selling. January settled at 215.65, and March at 205.65 both down the $4.50 limit.
Feeder cattle receipts at the St. Joseph, Missouri Stockyards totaled 4013 head on Wednesday. Compared to last week, the market was steady to lower, with the greatest decline10.00 to 15.00 lower on weights from 650 to 750 pounds. The overall quality was very good on the calf offering with the best demand for lighter steer and heifer calves suitable for grass. Feeder steers, medium and large 1 averaging 722 pounds brought 230.50 per hundredweight. 722 pound heifers traded at 207.80.
Lean hog contracts settled mostly higher with just a couple of contracts in the red. The focus on losses earlier in the week seems to have calmed many traders need to liquidate additional positions. Although there was not significant buyer support redeveloping in the complex, the focus on short covering helped to bring some stability into the market, at least for the short term. February settled at 75.62 down .40, but April was up .35 at 78.35.
There was slow to moderate hog market activity with moderate demand. Barrows and gilts in the Iowa/Minnesota direct trade closed .14 lower at 71.41 weighted average on a carcass basis, the West was down .01 at 71.36, and the East was not reported due to confidentiality. Missouri direct base carcass meat price was steady to 1.00 lower from 62.00 to 65.00. Midwest hogs on a live basis ended steady from 46.00 to 55.00.
For the week ending January 10, Iowa barrows and gilts averaged 288 pounds, 0.3 pounds heavier than the prior week and 5.4 pounds bigger than 2014. Frigid temperatures are doing much to curb live weights.
The pork carcass cutout value FOB plant was down .42 at 83.89. Only hams and bellies higher.
Thursday’s hog kill is estimated at 432,000 head, 45,000 more than last week, and 8,000 greater than last year.
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