Wednesday's Closing Grain and Livestock Futures Prices.
Jul. corn closed at $4.41 and 1/2, up 2 and 3/4 cents
Jul. soybeans closed at $14.09, up 10 and 3/4 cents
Jul. soybean meal closed at $453.20, up $2.50
Jul. soybean oil closed at 40.13, up 45 points
Jul. wheat closed at $5.87, up 5 and 1/4 cents
Jun. live cattle closed at $145.90, down 60 cents
Jul. lean hogs closed at $125.42, up 50 cents
Jul. crude oil closed at $105.97, down 39 cents
Jul. cotton closed at 91.15, up 109 points
Jul. Class III milk closed at $21.71, down 8 cents
Jun. gold closed at $1,272.40, up 70 cents
Dow Jones Industrial Average: 16,906.62, up 98.13 points
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Agri Markets News Review
Soybeans were higher on short covering and technical buying. Nearbys were a little oversold after Tuesday’s drop and unknown did buy 140,000 tons of old crop U.S. beans. Still, buying interest has been light and the trade expects a big, if not record, crop. Soybean meal and oil were up, following the lead of beans. Brazil’s soybean sales are going well, but farmers in Argentina are reportedly holding on to both old and new crop beans.
Corn was mixed in consolidation trade. Contracts were up early, but couldn’t follow through with no real fresh supportive news. At least for now, the overall development picture generally looks benign. Ethanol futures were lower. According to the EIA, ethanol production for the week ending June 13 was a record 972,000 barrels per day. The previous record was set during the week ending December 30, 1011 at 936,000 barrels per day.
The wheat complex was higher on fund and technical buying. Kansas City led the way up on reports of poor yields, in addition to some harvest delays. Chicago followed Kansas City higher, while keeping an eye on its own harvest delays. Minneapolis was supported by the recent wet weather in the Northern Plains. According to Reuters, Brazil is going to reduce its wheat import tax on wheat imports from outside the Mercosur member states from 10% to zero. DTN reports Tunisia bought 159,000 tons of soft milling wheat “believed to be Black Sea origin”.
USDA Mandatory reported cattle trading was slow to moderate in Nebraska on Wednesday on light to moderate demand. Isolated live sales have traded at 148.00 for delivery more than two weeks out. Limited dressed trade has ranged from 234.00 to 238.00, but not enough to establish a market. Most feedlot managers are holding out for more money. Asking prices are around 150.00 plus in the South and 240.00 plus in the North. The cattle slaughter totaled 116,000 head, 1,000 more than last week, but 8,000 below a year ago.
Boxed beef cutout values were higher on moderate to fairly good demand and light to moderate offerings. Choice boxed beef was up 2.74 at 239.54 and select was 2.78 higher at 232.05.
Chicago Mercantile Exchange live cattle contracts settled 60 to 160 points lower following the limit down surge in the feeder cattle futures market. Overall tight supplies are still the main focus of the market, but given the recent trajectory of the market, a moderate market correction has to be expected according to DTN analysts. June settled .60 lower at 145.90, and August was .70 lower at 145.02.
Feeder cattle ended the session 300 points lower across the board. Futures came under significant pressure following active selling that quickly led to limit down trade. A combination of technical pressure after prices reached historic market highs, and active position squaring in order to adjust to the recent market rally. August settled at 204.85, and September at 205.57, both were 3.00 lower.
Feeder cattle receipts at the Ozarks Regional Stockyards at West Plains, Missouri totaled 3285 head-on Tuesday. Compared to last week, feeder steers and heifers traded 3.00 to 9.00 higher. The demand was good to very good on a moderate supply. A smaller crowd than normal was on hand, as many producers took advantage of a few days without rain to harvest hay. Feeder steers medium and large 1 averaging 574 pounds brought 240.15 per hundredweight. 478 pound heifer calve traded at 219.52.
Lean hogs settled 60 to 100 points lower with only spot July higher. Follow through pressure developed in lean hog futures, but the sharp limit-down losses in the feeder cattle market essentially stole the thunder from the lean hog complex. The main pressure in the market remains to be seen in October through February contract months, with traders quickly backing away from last week’s gains, although little additional concrete supply information is available. July settled .50 higher at 125.42, but August was down .77 at 127.77.
Barrows and gilts in the Iowa/Minnesota direct trade closed 1.12 higher at 119.16 weighted average carcass basis, the West was up 1.03 at 118.97, and the East was 1.33 higher at 116.07. Missouri direct base carcass meat price was steady from 106.00 to 111.00. Butcher hogs at Midwest markets were steady to 2.00 higher on a live basis from 76.00 to 82.00.
The pork carcass cutout value ended the day significantly higher FOB plant at 126.17 up 2.21.
The combination of significantly higher country bids and limited receipts continues to underscore seasonal bullishness in the hog market.
Wednesday’s hog kill was estimated at 370,000 head, 39,000 less than last week, and down 34,000 from last year.
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