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Soybean Futures Prices Plummet; Corn & Wheat Follow

Thursday's Closing Grain & Livestock Futures Prices

May corn closed at $5.03 and 1/4, down 10 and 3/4 cents
May soybeans closed at $14.73 and 1/2, down 57 and 1/4 cents
May soybean meal closed at $486.70, down $17.20
May soybean oil closed at 40.92, down 96 points
May wheat closed at $6.98 and 3/4, down 14 and 1/4 cents
Jun. live cattle closed at $139.25, up $2.05
Jun. lean hogs closed at $122.80, down 32 cents
Jun. crude oil closed at $99.42, down 32 cents
Jul. cotton closed at 94.20, down 9 points
May Class III milk closed at $22.85, up 30 cents
Jun. gold closed at $1,283.40, down $12.50
Dow Jones Industrial Average: 16,558.87, down 21.97 points

For additional futures prices and charts click http://www.farms.com/markets

Market News Review

Soybeans were sharply lower on fund and commercial selling. Weekly export sales were smaller than expected, but it was another good week for the shipments. Allendale says more shipments of Brazilian soybeans have hit the U.S. and more are on the way, easing domestic supply issues. Soybean meal and oil were lower, following the lead of beans.

Corn was lower on fund and commercial selling. Forecasts show better weather for planting around the Midwest, with drier conditions and warmer temperatures. Specifically, forecasts for later this week into early next week are expected to have a solid window for planting in some key U.S. growing areas. Weekly export numbers were neutral to bullish. Ethanol futures were lower.

The wheat complex was lower on fund and technical selling. Chicago led the way down, with soft red winter in good shape and Minneapolis is looking at a slight chance for better planting weather. Kansas City did post losses despite miserable hard red winter conditions in some key growing areas. The Kansas crop tour is expected to show the lowest overall yield in a number of years and Oklahoma’s crop could be down 37% from 2013.

Cattle buyers kept their hands in their pockets on Thursday afternoon, apparently delaying the completion of procurement chores until sometime on Friday. Bids were reported by private sources from 142.00 to 145.00 live and 232.00 to 236.00 dressed. Asking prices are firm at 147.00 to 148.00 in the South and 237.00 to 238.00 in the North. Feedlot psychology was probably boosted by the sharp rally in the feeder futures. On the other hand packer caution was probably intensified by signs of defensive action in the boxed beef trade. The cattle slaughter was estimated at 119,000 head, 1,000 more than last week and a year ago.

Boxed beef cutout values were lower to sharply lower on light to moderate demand and moderate to heavy offerings. Choice boxed beef was 2.78 lower at 230.34 and select was down 1.31 at 220.98.

Live cattle contracts on the Chicago Mercantile exchange settled 167 to 250 points higher as strong buyer support held in the cattle futures on Thursday. The pressure in the boxed beef values was unable to limit buyer support on the first of the month. Additional technical support is expected in the market over the near term, although traders will still be subjected to the ability for cash and beef prices to find support at the end of the week. June settled 2.05 higher at 139.25, and August was up 2.50 at 138.57.

Feeder cattle ended the session 275 to 300 points higher. Sharp triple digit gains flooded into the feeder cattle complex. Some support came in the form of lower corn prices. All summer and fall contracts settled limit higher. May was up 2.75 at 183.95, and August closed 3.00 higher at 190.47. New contract highs were reached across the board.

Feeder cattle receipts at the Hub City Livestock Auction at Aberdeen, South Dakota totaled 3372 head on Wednesday. Feeder steers trended 3.00 to 7.00 higher with an instance of 9.00 higher. Heifers from 4.00 lower to 4.00 higher. There was moderate to good demand on the offering of many small packages and load lots in mostly moderate flesh condition. Feeder steers, medium and large 1 weighing 777 pounds average 187.59 per hundredweight. Heifers averaging 776 pounds traded at 177.04.

Lean hogs settled 105 points higher to 32 lower in light to moderate mixed trade. Traders seem to have worked past the aggressive triple digit losses seen at midweek, but it was difficult to draw buyer support back into the front month contracts. Deferred contracts led the market rally with gains in the October futures over a 1.00 based on the potential that supplies may remain tighter longer than previously expected for the market. Only the two front months were lower with May down .30 at 117.37 and June .32 lower at 122.80.

There was slow hog market activity with light to moderate demand. Barrows and gilts in the Iowa/Minnesota direct trade closed .36 higher at 112.50, the West was down .16 at 111.99, and the East was .59 lower at 106.44. Missouri direct base carcass meat price closed steady at 102.00. Barrows and gilts at Midwest markets were steady to 2.00 lower live from 74.00 to 86.00.

The pork carcass cutout value was down 2.02 at 113.78 FOB plant. All primal cuts were lower.

The average live weight of Iowa barrows and gilts last week jumped to another new record at 287.5 pounds, 1.1 pounds bigger than the prior week and 9.5 pounds heavier than 2013.

Thursday’s hog slaughter was estimated at 415,000 head, 5,000 less than last week, but 5,000 more than last year.

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