Closing Grain and Livestock Futures
Mar. corn closed at $4.34, up 1/2 cent
Mar. soybeans closed at $12.82 and 3/4, up 7 and 3/4 cents
Mar. soybean meal closed at $426.10, up 90 cents
Mar. soybean oil closed at 37.64, up 57 points
Mar. wheat closed at $5.55 and 3/4, up 2 and 1/4 cents
Feb. live cattle closed at $141.67, down 47 cents
Feb. lean hogs closed at $86.22, down 15 cents
Mar. crude oil closed at $97.49, down 74 cents
Mar. cotton closed at 85.83, down 20 points
Feb. Class III milk closed at $23.11, down 18 cents
Mar. gold closed at $1,239.80, down $2.60
Dow Jones Industrial Average: 15,698.85, down 149.76 points
Dow Jones Industrial Average: 15,738.79, down 189.77 points
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Market News Update
Soybeans were higher on commercial and technical buying. The near term supply remains tight and demand continues to look good, but China’s celebrating their New Year, which could take them out of the market for a while. However, while there haven’t been any new sales recently, there haven’t been any major cancellations lately either. The trade’s continuing to watch weather and harvest activity in South America. Soybean meal was mixed, consolidating, and bean oil was up, following beans.
Corn was mostly higher on old crop/new crop spread trade, along with spillover from beans and wheat. Corn’s also watching South American weather with generally good conditions in corn growing areas of Argentina and Brazil. Spain bought another 110,000 tons of old crop U.S. corn, but the supply is very large, keeping the overall fundamentals bearish for the time being. Ethanol futures were lower. Kenya, via Dow Jones Newswires, says it will need to import 143,000 tons of corn by May, 135,000 of that from the East Africa trading bloc, in order to make up domestic production shortfalls.
The wheat complex was higher on short covering and technical buying. The complex is watching weather here in the states and in parts of Ukraine and Russia, but at least for now, it looks like winterkill chances are minimal. Russia and Ukraine have both closed key ports due to winter weather. Egypt does have some new wheat import restrictions, which could lead to improved demand. Jordan issued a tender for 100,000 tons of wheat and Algeria is in the market for 50,000 tons of durum.
Cattle country was pretty much at a standstill on Friday afternoon with packers and feedlot managers far apart on the prices on this week’s showlists. Given the way both sides planted their heels, trade volume could be very light. DTN says they have a feeling that feedlot managers are willing to trade some cattle below last week’s market, but not as much as sharply lower that packer bids suggest. Live bids range from 142.00 to 144.00 while asking prices are 148.00 plus. Dressed bids are at 232.00 and asking prices at 240.00 plus. Private sources reported the sale of a few head of cattle In Nebraska at 232.00.
Boxed beef cutout values were sharply lower on very light demand and light offerings. Choice boxed beef was down 7.26 at 223.49 and select was 4.94 lower at 224.85.
The weekly slaughter at 566,000 head is down 31,000 from last week and 53,000 less than last year.
Chicago Mercantile Exchange live cattle contracts settled 30 points higher to 72 lower pressured by news that National Beef plans to close its beef processing plant in Brawley, California effective April 4th. John Harrington at DTN reported many in the trade saw the announcement as negative to cash potential since it would reduce excess chain speed and possibly lead to greater leverage. Short covering and spec buying entered the market near midsession leading to a mixed close. There was also caution in market ahead of cash trade and the cattle inventory report. February settled .45 lower at 141.67 and April was down .10 at 140.42.
Feeder cattle ended the session 12 to 72 points higher supported by lower action in the corn market and short-covering ahead of the annual inventory report. March was up .72 at 169.42, and April was .57 higher at 169.67.
Feeder cattle receipts at Missouri Auctions this week totaled 36,542 head. Compared to last week, steer calves under 650 pounds sold steady to 4.00 lower, over 650 pounds steady to 3.00 higher. All weights of heifers sold mostly steady to 3.00 higher. After several weeks of steadily climbing markets, prices became very uneven around the state. The feeder supply was very moderate following two weeks of heavy movement. 1632 head of feeder steers medium and large 1 aver ageing 625 pounds averaged 191.14 per hundredweight. 1053 heifers weighing 624 pounds brought 168.98.
Lean hogs ended the session 87 to 147 points higher with only February lower. The spot month was pressured by the discount of the cash index. But the balance of the pit was well supported due to further ideas of PEDv death loss and reduced production potential. February settled .15 lower at 86.22, and April was down 1.17 at 94.80.
There was moderate hog market activity and good demand on Friday afternoon. Barrows and gilts in the Iowa/Minnesota direct trade closed .42 higher at 81.72 on a carcass basis, the West was up .54 at 81.27, and the East was not reported due to confidentiality. Missouri direct base carcass meat price was steady from 72.00 to 74.00. Terminal hog were steady to an instance of 2.00 higher from 51.00 to 56.00 live.
The pork carcass value FOB plant was down 2.07 at 89.42 on a negotiated basis on Friday afternoon.
The number of new cases of PEDv has continued to climb in January with the latest week having the highest number to date. The case count for the January 19- 25 period was 215, giving the month of January the highest weekly average to date at nearly 206.
The weekly hog slaughter at 2,132,000 head is 90,000 less than last week and down 37,000 from last year.
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