Monday's Closing Grain and Livestock Futures
Mar. corn closed at $4.34 and 1/4, up 1 cent
Jan. soybeans closed at $13.28 and 1/2, down 10 and ½ cents
Jan. soybean meal closed at $444.20, down $2.40
Jan. soybean oil closed at 39.28, down 16 points
Mar. wheat closed at $6.09 and 1/2, down 4 cents
Dec. live cattle closed at $132.70, up 17 cents
Feb. lean hogs closed at $86.20, down 5 cents
Feb. crude oil closed at $98.91, down 41 cents
Mar. cotton closed at 83.19, up 4 points
Jan. Class III milk closed at $19.59, down 3 cents
Dec. gold closed at $1,227.90, up $20.00
Dow Jones Industrial Average: 16,294.61, up 73.47 points
For additional futures prices click http://www.farms.com/markets
Market News Update
Soybeans closed lower Monday. That is in spite of a USDA announcement of 120,000 tons of U.S. soybeans being sold to unknown destinations. According to DTN, the market was showing caution as prices approached December’s highs. The fundamental outlook for soybeans remains bullish, but with ongoing concerns about China’s commitment to their purchases. Monday’s export report was bullish for soybeans. South American growing conditions are favorable, showing rain next week, but this week it’s hot and dry in Argentina and Brazil.
Corn, at least the nearby months, closed slightly higher on Monday after a bullish export inspections report from the USDA. China’s recent rejection of 545,000 tons of U.S. corn because of unapproved GMO issues has not been as bearish as expected, according to analysis from DTN. The Chinese said they are continuing to evaluate the genetic strain, but after two years of consideration, still have not approved it.
Chicago wheat closed lower Monday. U.S. winter wheat seems to be doing well, receiving precipitation from Oklahoma to Ohio and avoiding damaging cold temperatures so far. Canada’s announcement earlier this month of record wheat production triggered fresh selling and lower prices, and the current harvest in Australia is doing well, but questions remain about Argentina, according to DTN. Similar to corn, wheat prices are getting low enough to bolster demand.
Cattle country was quiet on Monday afternoon following the distribution of the new showlists. The supply of ready cattle this week appears to be about steady with last week. Given the timing of Christmas little if any action is expected before Thursday or Friday. A few feedlot managers have suggested asking prices of 132.00 to 133.00 in the South and 210.00 plus in the North. The kill totaled 121,000 head, 1,000 more than last week, and not comparable to last year’s holiday.
Boxed beef cutout values were steady on choice and sharply higher on select on light to moderate demand and offerings. Choice beef was down .19 at 196.69, and select was up 2.09 at 190.52.
Live cattle contracts on the Chicago Mercantile Exchange settled narrowly mixed from 17 points higher to 5 lower. Futures spent much of the session moderately higher, cautiously supported by the friendly cattle on feed report released on Friday and technical buying. Few expect any big swings this week given distractions connected to the Christmas holiday. December was up .17 at 132.70 and February was .05 higher at 133.95.
Feeder cattle ended the session 22 higher to 30 points lower, feeders were mostly lower, but DTN analyst John Harrington said there really wasn’t much rhyme or reason to the watery business. The small crowd of traders may have been involved in pre-Christmas profit taking. January settled .05 lower at 86.20 and April was down .22 at 90.95.
Feeder cattle receipts at the Lexington Livestock Market at Lexington, Nebraska totaled 2155 head on Friday. Compared to the previous week, steers and heifers sold unevenly steady to 2.00 higher. Quite a few offerings were bawlers without fall shots. Demand was good from a large crowd of buyers from start to finish. 157 head of feeder steers averaging 664 pounds traded at 176.17 per hundredweight. 142 heifers weighing 688 brought 164.34.
Lean hogs also settled mixed from 7 higher to 22 points lower. Price range and trade volume was very thin. Spot fundamentals may suggest a downward bias, but no one really seemed to care. We may have to wait until the first full week of January before the market is ready to produce a solid opinion regarding true price prospects. February was .5 lower at 86.20, and April was up .22 at 90.95.
The hog market trend was not well established on Monday afternoon. There was slow market activity with light demand. Barrows and gilts in the Iowa/Minnesota and Western direct trade areas were not established due to confidentiality. Nationally the market was .89 higher with a weighted average of 77.43 on a carcass basis. Eastern hogs closed at 77.20 with no price comparison. Missouri direct base carcass meat price was steady to 2.00 lower from 71.00 to 74.00. Terminal hogs were steady to 2.00 lower from 50.00 to 55.00.
Just when traders and seasonal analysts were expecting the hog kill to move past its seasonal peak, chain speed sets a new weekly high for the year last week at 2.358 million head, 1.5% greater than the prior week and virtually unchanged with 2012. If carcass weights remain high, pork could start to exceed last year.
The pork carcass cutout value FOB plant was down .19 at 85.20 on a negotiated basis in the afternoon report.
The hog slaughter was estimated at 439,000 head, 1,000 more than last week, and 188,000 more than last year.
Click here to see more...