Monday's Closing Futures Prices.
Jul. corn closed at $6.91 and 3/4, up 7 cents
Jul. soybeans closed at $16.09 and 1/4, up 21 and 1/4 cents
Jul. soybean meal closed at $511.10, up $22.00
Jul. soybean oil closed at 47.01, down 22 points
Jul. wheat closed at $6.60, up 4 cents
Aug. live cattle closed at $122.07, up 12 cents
Jul. lean hogs closed at $101.12, down $1.22
Aug. crude oil closed at $103.14, down 8 cents
Jul. cotton closed at 83.83, up 15 points
Jul. Class III milk closed at $17.27, up 3 cents
Jul. gold closed at $1,234.90, up $22.00
Dow Jones Industrial Average: 15,224.69, up 88.85 points
For additional futures prices and charts click: http://www.farms.com/markets
Market News and ReCap
Soybeans were sharply higher on commercial and technical buying, with old crop closing near ten month highs. Unknown destinations bought 135,000 tons of U.S. beans and China picked up 120,000 tons of U.S. beans, both for delivery next marketing year. USDA reports 95% of beans have emerged, compared to 100% a year ago and the five year average of 97%, and 10% are blooming, compared to 42% last year and 24% on average, with 67% of the crop rated good to excellent, unchanged from a week ago. Soybean meal was sharply higher on the back of beans and bean oil was slightly lower with crude oil down modestly.
Corn was higher on technical and commercial buying. Mexico purchased 120,000 tons of U.S. corn for delivery next marketing year, which starts on September 1. USDA’s supply and demand report is out Thursday and should show tight old crop ending stocks against projections for a big new crop supply, but that still should be below USDA’s June guess. According to the Ag Department, 6% of the corn crop is silking, compared to 46% a year ago and 20% on average, with 68% of corn called good to excellent, up 1% on the week. Ethanol futures were higher.
The wheat complex was mixed. Chicago was up with China buying another 840,000 tons of U.S. soft red winter, bringing Beijing’s total over the past week to well over 1 million tons, Kansas City was supported by hard red winter yield concerns, and Minneapolis was down on forecasts for good development weather. For winter wheat, 57% of the crop is harvested, compared to 78% last year and 64% on average, with 34% of the crop in good to excellent shape, unchanged from last week. For spring wheat, 98% has emerged, compared to 100% a year ago and 99% on average, with 45% headed, compared to 85% last year and 53% on average, and 72% of spring wheat rated good to excellent, up 4% from a week ago. November European wheat was lower.
The feedlot cattle trade was quiet on Monday afternoon following the distribution of the new showlists. Ready numbers are generally smaller than last week with only Colorado producers offering more steers and heifers. A few showlists have been priced around 122.00 plus in the South and 196.00 to 197.00 in the North. The kill totaled 122,000 head, 1,000 below last week, and 3,000 smaller than last year at this time.
Boxed beef cutout values were lower to sharply lower on light demand and light to moderate offerings. Choice boxed beef was down 1.49 at 194.85, and select was 2.60 lower at 185.13.
The live cattle trade was sluggish on the Chicago Mercantile Exchange on Monday with light to moderate gains at the close. The support in outside markets helped to lend early support to the futures, but pressure in boxed beef values to start the week eroded most of the initial support. August settled .12 higher at 122.07, but October was down .07 at 126.17.
Feeder cattle ended the session mostly lower due in part to higher grain prices. The uncertainty about longer term direction in feed prices is causing some concern about drawing additional support back into the feeder market. August settled .20 lower at 151.60, and September was .02 lower at 154.15.
Feeder cattle receipts at the Joplin Regional Stockyards on Monday totaled 4,000 head today. Compared to last week, steer calves opened steady to 2.00 higher with heifer calves and yearlings steady in the early go. Demand and supply was moderate. Feeder steers medium and large 1 averaging 500 to 600 pounds brought 148.50 to 163.00 per hundredweight. 7 to 8 weights traded from 133.00 to 141.00. Feeder heifers weighing 500 to 600 pounds traded from 135.00 to 145.00. 7 to 8 weight heifers from 131.00 to 132.50 at Joplin, Missouri.
Lean hogs saw sharp losses on Monday and settled 50 to 220 points lower with August leading the surge lower. Traders focused their attention on the lack of support in both the cash and wholesale pork market which seems to be in a free-fall through the last couple of trading sessions. July settled 1.22 lower at 101.12 and August was down 2.20 at 95.55.
There was slow market activity with light demand in the direct hog trade on Monday. Barrows and gilts in the Iowa/Minnesota direct trade closed 2.30 lower at 97.41 on a carcass basis, the West was down 2.99 at 96.55, and the East was .59 lower at 98.74. Missouri direct base carcass meat price closed steady to 3.00 higher from 93.00 to 97.00. Terminal hogs were steady from 65.00 to 70.00 live.
The pork carcass cutout value was up .36 at 106.34 FOB plant on a negotiated basis in the afternoon report.
From Friday to Friday, the pork carcass value crashed by $3.97 with major damage tied to the imploding belly primal off $22.46 over the time period.
The hog kill was estimated at 404,000 head, 18,000 less than last week, but 11,000 more than last year.
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