Thursday's Closing Grain and Livestock Futures
Dec. corn closed at $4.39 and 1/4, up 1/4 cent
Nov. soybeans closed at $12.88 and 1/4, up 14 and 1/2 cents
Oct. soybean meal closed at $427.80, up $10.20
Oct. soybean oil closed at 40.01, up 89 points
Dec. wheat closed at $6.89 and 1/4, up 3 and 1/4 cents
Oct. live cattle closed at $127.42, up 12 cents
Oct. lean hogs closed at $90.95, up 2 cents
Nov. crude oil closed at $103.31, down 79 cents
Dec. cotton closed at 87.44, up 57 points
Oct. Class III milk closed at $18.15, up 6 cents
Oct. gold closed at $1,317.40, down $3.20
Dow Jones Industrial Average: 14,996.48, down 136.66 points
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Market News and ReCap
Soybeans were higher on commercial and technical buying. The trade’s watching harvest activity and the potential for widespread delays in some key growing areas due to a cooler, wetter weather system. Light rain in Brazil will help with planting, but the long term forecasts continue to look hot and dry. Soybean meal and oil were higher, following beans.
Corn was fractionally higher on technical buying and spillover from beans and wheat. Corn’s also watching the weather and probable harvest delays, including the chance for snow in parts of the Western Cornbelt and Northern Plains. Past that – the trade’s continuing to watch developments out of Washington DC and questions whether or not we’re going to get that October 11 crop report. Ethanol was modestly higher. South Korea’s Feed Leaders’ Committee bought 63,000 tons of optional origin corn and the Taiwan Maize Industry Procurement Association purchased 60,000 tons of corn from Brazil.
The wheat complex was higher, hitting new fourteen week highs, on commercial buying and short covering. There was more rain overnight in parts of Russia and Ukraine, further delaying planting in key growing areas. Japan bought 72,504 tons of U.S. milling wheat, along with about 46,000 tons from Canada (45,952 tons Canadian western red spring, 29,649 tons of U.S. dark northern spring, 24,725 tons U.S. western white, and 18,130 tons U.S. hard red winter). In sell-buy-sell trade, Tokyo also picked up 55,640 tons of feed wheat and 36,320 tons of feed barley.
A light to moderate cattle trade was evident in several areas on Thursday afternoon. Live business in the South was basically steady at 126.00. On the other hand, prices in the North appear to be mixed. Live sales in Nebraska look steady weak, but dressed business ranging from 198.00 to 200.00, looks steady to 2.00 lower. With mandatory reporting down, it will be difficult to assess trade volume through the feeding areas. At this time it would appear that the South is close to being done for the week given poor processing margins and cautious cattle buyers. On the other hand, Northern trade volume is more limited, suggesting that buyers and sellers still have more work to do on Friday.
Live cattle futures traded mixed in a light trade. The focus on narrow trading range in the corn markets kept most of the volatility out of cattle futures. Trader’s attention was on the direction of the stock market which was under pressure for the second trading day in a row. Narrow trading ranges are expected in the cattle through the near future. October cattle settled .12 higher at 127.42, and December was down .05 at 131.77.
Feeder cattle ended the session 20 to 57 points lower as moderate pressure was seen throughout the feeder complex based on the pressure in live cattle and lack of additional outside market direction. Traders squared positions following the early week trade, but very little long term focus seemed to develop as traders appeared to tread water as they waited for the next wave of news to develop. October was down .47 at 35.91 and December was up .60 at 86.77.
Feeder cattle receipts at the Springfield, Missouri Livestock Marketing Center totaled 1575 head on Wednesday. Compared to last week, steer calves were 2.00 to 5.00 higher, heifer calves were 2.00 to 7.00 higher. The demand was good and supply was moderate. Feeder steers medium and large 1 weighing 500 to 600 pounds averaged 162.00 to 179.00 per hundredweight. 7 to 8 weight steers brought 155.50 to 164.00. The same quality feeder heifers weighing 500 to 600 pounds brought 157.50 to 167.50. 7 to 8 weight heifers were mostly scarce.
Lean hogs settled 20 to 60 points higher as light support developed through the lean complex with the early support holding through the close. Very little outside or fundamental direction was seen to draw traders in or out of the market. The futures have traded over the last several days similar to holiday traded days when there is very little trader interest to draw activity back into the market. October settled .35 higher at 91.30, and December was up .60 at 86.77.
Direct trade hog prices are not reported due to the government shutdown. Missouri direct base carcass meat price closed steady to weak from 85.00 to 88.00; cash sow prices were steady from 60.00 to 76.00. At Peoria, Illinois barrows and gilts closed 1.00 lower from 60.00 to 62.00, and sows were steady from 71.00 to 75.00. Zumbrota, Minnesota hog prices were steady at 60.00 live.
Pork processing margins have improved a great deal over the last week and are expected to remain in the black through the balance of 2013. Aggressive chain speed plans (especially when market hog numbers are tighter than expected) should be seen as price supportive.
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