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Soybean Futures Prices Soar After USDA Report.

Monday's Closing Grain and Livestock Futures
Mar. corn closed at $4.34 and 1/2, up 1 and 3/4 cents
Jan. soybeans closed at $13.26 and 3/4, up 23 cents
Jan. soybean meal closed at $446.90, up $11.70
Jan. soybean oil closed at 37.57, down 38 points
Mar. wheat closed at $5.73 and 1/2, up 4 and 1/2 cents
Feb. live cattle closed at $136.60, down 10 cents
Feb. lean hogs closed at $85.37, down 45 cents
Feb. crude oil closed at $91.80, down 92 cents
Mar. cotton closed at 83.68, up 109 points
Jan. Class III milk closed at $20.66, up 16 cents
Mar. gold closed at $1,251.50, up $4.20
Dow Jones Industrial Average: 16,257.94, down 179.11 points

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

Agri Commodities Market News Review

Soybeans were higher on fund and commercial buying. Demand is solid, unknown bought 140,000 tons of 2013/14 U.S. beans, and the overall supply will remain tight over the near term. Conditions in Brazil look good, but parts of Argentina will see a return to hot, dry conditions this week. Taking exports and South America into account, the trade does expect at least some cancellations of previous purchases once South American beans start to hit the market. Harvest is underway in Brazil’s top production states of Mato Grosso and Parana. Soybean meal was higher and bean oil was lower on the adjustment of product spreads.

Corn was mixed, consolidating after the big gains on Friday. Last week’s smaller than expected 2013 production number was definitely a surprise and corn responded accordingly. That said – the supply remains relatively large and while domestic demand is good, exports have been slow. Ethanol futures were lower. China bought 120,000 tons of 2013/14 U.S. grain sorghum.

The wheat complex was mixed with Chicago up after Egypt bought 55,000 tons of U.S. soft red winter. Past that – there was no real fresh news, domestic development conditions generally look good, and stocks were larger than expected in that last round of USDA reports. Argentina has raised its production and export estimates, projecting the crop at 9.2 million tons, while 2013/14 exports are seen at 1.5 million tons. DTN reports Iran bought 50,000 tons of wheat from Kazakhstan. According to Ukraine’s Ag Ministry, grain exports since the start of the marketing year July 1 are 19.85 million tons, up 34% from the same period a year ago, with Russia’s Ag Ministry adding grain sales are 26% ahead of the year ago pace at 16.384 million tons.

Cattle country was quiet on Monday following the distribution of the new showlists. The new offering appears to be generally smaller than last week, with only Kansas reporting about the same ready numbers. A few showlists have been reportedly priced around 141.00 to 142.00 in the South and 225.00 plus in the North. The kill totaled 118,000 head, 8,000 more than a week ago, but 7,000 smaller than last year.

Boxed beef cutout values were higher to sharply higher on moderate demand and light offerings. Choice boxed beef was up 1.96 at 216.94, and select was up 3.18 at 214.76.

Live cattle contracts on the Chicago Mercantile Exchange settled mostly lower. Traders concentrated on both long and short term direction issues through the complex. The nearby contracts did regain light support based on aggressive moves in the boxed beef values. But most of the contracts remained lower due to higher feed costs and pressure in the feeder cattle futures. February settled .10 lower at 136.60, and April was up .10 at 137.07.

Feeder cattle settled 45 to 117 points lower. Even though corn prices were not able to show additional support early in the week, just the fact that prices held near where they left off on Friday created additional pressure in the feeder cattle complex. January settled .82 points lower at 167.82 and March was down 1.17 at 166.47.

Feeder cattle receipts at the Joplin, Missouri Regional Stockyards totaled 9000 head. No recent Monday sale for a price comparison. Compared to last week’s value added sale steers and heifers weighing less than 700 pounds sold steady, over 700 pounds were steady to 2.00 lower on comparable sales. The demand was good and supply was heavy. Feeder steers medium and large 1 weighing 600 to 700 pounds traded from 172.00 to 186.00 per hundredweight. 6 to 7 weight heifers brought 161.50 to 164.00.

Lean hogs settled unchanged to 62 points lower. Lean futures were lower on the lack of support in fundamentals from the morning report. DTN analysts’ report traders are looking for increased interest to develop through the rest of the week, but so far there wasn’t much support expected to step into the market over the near future. June futures held prices over $100.00 per hundredweight. But the lack of nearby contracts to hold onto recent gains is becoming a problem for the entire complex. February settled .45 lower at 85.37, and April was down .62 at 90.37.

There was slow hog market activity with light demand on Monday afternoon. The Iowa/Minnesota direct trade barrows and gilts closed .90 higher at 78.13 on a carcass basis, the West was up .65 at 77.69, and the East was .58 lower at 76.09. Missouri direct base carcass meat price was steady from 73.00 to 75.00. Terminal hogs were steady with an instance of .50 higher from 51.00 to 60.00.

The pork value was .88 lower at 83.17 FOB plant on a negotiated basis.

The ongoing combination of generally flat hog sales and decent pork processing margins suggests that market ready numbers of barrows and gilts remain entirely adequate, largely unchecked by either seasonal tightening or PEDv death loss.

The Monday hog slaughter was estimated at 430,000 head, 134,000 more than last week, and 4,000 greater than last year.

 

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