Wednesday's Closing Grain & Livestock Futures Prices.
Jul. corn closed at $4.72 and 1/2, up 2 and 1/4 cents
Jul. soybeans closed at $14.97 and 3/4, up 9 cents
Jul. soybean meal closed at $498.50, up $4.30
Jul. soybean oil closed at 39.63, down 31 points
Jul. wheat closed at $6.38 and 3/4, down 2 and 1/4 cents
Jun. live cattle closed at $136.15, up 55 cents
Jun. lean hogs closed at $114.55, down $1.95
Jul. crude oil closed at $102.72, down $1.39
Jul. cotton closed at 84.87, down 10 points
Jun. Class III milk closed at $21.03, down 75 cents
Jun. gold closed at $1,259.30, down $6.20
Dow Jones Industrial Average: 16,633.18, down 42.32 points
For additional futures prices and charts click http://www.farms.com/markets
Agri Market News Review
Soybeans were higher, seeing a late technical and commercial bounce. There are more beans from South America headed for the U.S., but demand remains strong. China bought another 110,000 tons of new crop U.S. beans and the Philippines picked up 172,000 tons of new crop U.S. cake and meal. Soybean meal was up and bean oil was down on the adjustment of product spreads.
Corn was higher on fund and commercial buying. Corn planting is right at the five year average, with good progress in most of the Midwest over the past week. Forecasts for the next week and a half or so generally look good with warmer temperatures and scattered rainfall around much of the region. Ethanol futures were higher.
The wheat complex was lower on fund and technical selling, along with the higher dollar. The winter crop condition rating improved over the past week and spring planting made a solid advance. The trade’s also watching weather, and politics, around the Black Sea region, particularly dry weather in Russia. The Philippines bought 107,500 tons of feed wheat, according to DTN, either from the Black Sea region or the European Union.
Feedlot action Wednesday was very limited with just a few sales reported in Nebraska at 232.00 on a dressed basis. Private sources reported a few bids in the South from 141.00 to 142.00. Asking prices are around 145.00 to 146.00 in the South and 234.00 plus in the North. Significant cattle trade is not expected to develop before Thursday or Friday. The slaughter was estimated at 119,000 head, 2,000 more than last week, but 8,000 less than last year.
Boxed beef cutout values saw moderate to fairly good demand and light to moderate offerings. Choice beef was up 1.19 at 234.31, and select was 1.50 higher at 224.15.
Live cattle contracts held decent gains and settled 35 to 75 points higher on the Chicago Mercantile Exchange on Wednesday. Support came from signs of better demand for wholesale beef. Even the early summer bears are beginning to wonder if the board’s deeps discounts are not beginning to look overdone. June was up .55 at 136.15, and August was .35 higher at 137.10,
Feeder cattle contracts ended the session 115 to 207 points higher. The bulls were running again through the feeder pit where tripe digit gains dominated. This market continues to be supported by advancing cash sales, cheaper feed, and ideas of shrinking numbers of available placement supplies. August settled 2.07 points higher at 195.57, and September was up 1.70 at 196.50.
Feeder cattle receipts at Russell, Iowa totaled 4300 head. Compared to the sale two weeks ago, feeder steers under 500 pounds were mostly 10.00 to 15.00 higher, over 500 pounds mostly 4.00 to 8.00 higher., and feeder heifers weighing less than 500 pounds mostly 16.00 to 22.00 higher, heifers over 500 pounds mostly 6.00 to 12.00 higher. The trade was active and demand was very good. Feeder steers averaging 529 pounds brought 148.11 per hundredweight. 572 pound heifers averaged 216.30.
Lean hog contracts were 30 to 195 points lower. The summer contracts were sharply lower. Bullish bets on seasonal improvements in fundamentals have just not paid off according to John Harrington at DTN. Maybe better news in this regard is just delayed. Nevertheless, recent long liquidation indicates that many once bullish specs have grown tired of waiting. June lean hogs settled 1.95 lower at 114.55, and July was down 2.15 at 121.27.
Barrows and gilts in the Iowa/Minnesota direct trade closed .37 lower at 108.18 weighted average on a carcass basis, the West was down .16 at 108.04, and the East was .03 higher at 104.97. The Missouri direct base carcass meat price was steady from 96.00 to 103.00. Barrows and gilts in the Midwest closed 1.00 higher to 2.00 lower from 72.00 to 78.00 live.
The pork carcass cutout value FOB plant gained 2.36 and closed at 115.25. All primal cuts were higher.
With June lean hogs nearly $17 off its late-winter high, the risk/reward calculation should be starting to shift toward the long side of the market. In more strict terms of technical analysis, nearby oscillators look oversold according to analysts at DTN.
Wednesday’s hog kill was estimated at 421,000 head, 15,000 more than last week, but down 5,000 from last year.
Click here to see more...