Closing Grain and Livestock Futures
Dec. corn closed at $4.28 and 1/4, down 3 cents
Jan. soybeans closed at $13.23 and 3/4, down 20 and 1/4 cents
Dec. soybean meal closed at $459.40, down $5.20
Dec. soybean oil closed at 39.80, down 40 points
Dec. wheat closed at $6.22 and 1/2, down 7 and 3/4 cents
Dec. live cattle closed at $132.25, up 35 cents
Dec. lean hogs closed at $81.32, up 40 cents
Jan. crude oil closed at $97.50, up 6 cents
Mar. cotton closed at 83.06, up 57 points
Dec. Class III milk closed at $18.92, down 11 cents
Dec. gold closed at $1,226.00, down $32.50
Dow Jones Industrial Average: 15,739.43, down 104.10 points
For additional futures prices visit http://www.farms.com/markets
Market News Report
Soybeans were lower on profit taking and fund selling. Outside markets were bearish and weekly export numbers were considered old news, even with combined sales of nearly 56 million bushels. Near term crop development conditions in South America generally look good, but some areas do need rain. Soybean meal and oil were lower on spillover from beans.
Corn was lower on profit taking and fund selling, in addition to spillover from the outside markets. Also, there was a bi-partisan bill introduced in the Senate that would repeal the ethanol mandate. At least for now, ethanol profit margins are strong and export demand is good with unknown buying 120,000 tons of 2013/14 U.S. corn two days in a row. Ethanol futures were lower.
The wheat complex was lower on profit taking, fund selling, and outside market pressure. There was no real fresh news for wheat, especially from the export side of the market, and the weekly numbers were considered old news. Past that – the trade’s watching U.S. winter wheat development conditions. Japan bought 132,800 tons of food wheat, including 78,900 tons from the U.S.
The cash cattle trade was slow on Thursday afternoon with preliminary bids reported in the South at 129.00 to 130.00 and 206.00 to 207.00 in the North. Asking prices remain firm at 133.00 to 134.00 in the South and 210.00 plus in the North. Attractive basis opportunities could spark some business today, but the surfacing of significant trade volume on Friday is the better bet. The cattle slaughter was estimated at 116,000 head, 6,000 less than last week, and 13,000 below 2012.
Boxed beef cutout values were weak to lower on light to moderate demand and moderate offerings. Choice beef was down 2.16 at 200.45, and select was .48 lower at 186.20.
Live cattle futures on the Chicago Mercantile Exchange settled 17 to 40 points higher on Thursday. The focus in the live pit was expected to be more based on position covering and renewed commercial buying interest than on any moves in beef values. The triple digit gains in feeder cattle contracts helped to increase support through other livestock markets. December settled .35 higher at 132.25, and February was .30 higher at 133.10.
Feeder cattle futures settled with triple digit gains. While there didn’t appear to be a lot of additional buyer support, the lack of selling pressure late in the week seemed to be the main focus of the market. The weakness in grain prices kept most traders interested in feeder cattle futures. January settled 1.40 higher at 167.07, and March was up 1.05 at 166.55.
Feeder cattle receipts at the Huss Platte Valley Auction in Nebraska totaled 3930 head on Wednesday. Compared to last week steers weighing less than 600 pounds were steady with instances of 10.00 higher on 550 pound offerings, 600 to 800 pound weaned offerings trended 1.00 to 4.00 higher. Heifers weighing less than 550 pounds sold mostly steady with 450 pound offerings 5.00 higher, over 600 pounds were steady to 3.00 higher. 676 pound feeder steers averaged 176.73 per hundredweight. 670 pound heifers averaged 164.50 at the Nebraska auction.
Lean hogs ended the session 20 to 40 points higher on the firmness through the rest of the livestock complex. Active short covering appeared to be the main focus of the trade. December settled .40 higher at 81.32, and February was up .22 at 88.00.
There was moderate market activity with moderate demand in the direct hog trade on Thursday afternoon. Barrows and gilts in the Iowa/Minnesota market were .46 higher at 78.72 on a carcass basis, the West was up .57 at 78.56 and the East was .27 higher at 78.88. The Missouri direct base carcass meat price closed steady to 1.00 lower from 73.00 to 75.00. Terminal hogs were steady from 54.00 to 56.00.
The pork carcass value ended the day 2.27 lower FOB plant at 88.13.
Hog weights remained on a roll. Last week, Iowa barrows and gilts averaged 282.4 pounds, 0.7 pounds heavier than the prior week and 7.5 pounds greater than 2012.
Thursday’s hog slaughter was estimated at 436,000 head, 3,000 more than last week, and 6,000 greater than last year.