Wednesday's Closing Grain & Livestock Futures Prices
Jul. corn closed at $4.95 and 1/2, down 7 and 1/4 cents
Jul. soybeans closed at $14.86 and 3/4, up 3 cents
Jul. soybean meal closed at $486.50, up $1.80
Jul. soybean oil closed at 41.38, up 17 points
Jul. wheat closed at $6.90 and 1/4, down 19 cents
Jun. live cattle closed at $137.45, up 45 cents
Jun. lean hogs closed at $120.57, up 97 cents
Jun. crude oil closed at $102.37, up 67 cents
Jul. cotton closed at 90.70, down 23 points
May Class III milk closed at $22.64, down 1 cent
Jun. gold closed at $1,305.90, up $11.10
Dow Jones Industrial Average: 16,613.97, down 101.47 points
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Market News Review
Soybeans were modestly higher on fund and commercial buying. Contracts were down early, but the near term supply remains tight and demand is strong, so contracts closed firm. NOPA’s April crush numbers are out Thursday and should reflect the solid domestic demand. Reuters adds China’s top soybean buyer, Shandong Sunrise, with 12% of the market share, will follow through on previously signed import deals and take the associated losses, instead of defaulting. Soybean meal and oil were up modestly, following beans. In their weekly state soybean auction, China’s government sold 276,000 tons out of the 300,000 tons offered.
Corn was lower on fund and technical selling, along with spillover from wheat. There are definitely some planting delays this week, but next week, at least now, looks good for much of the Midwest. Past that – there was no real fresh news for corn. Ethanol futures were higher. The EIA reports ethanol production for the week ending May 9 averaged 922,000 barrels per day, up on the week at a four week high.
The wheat complex was lower on fund and speculative selling. Kansas City and Minneapolis both responded to forecasts for weather next week: there’s a chance for rain in the Southern Plains and better planting weather for the Northern Plains. Soft red winter remains in comparatively very good condition. Ukraine’s Ag Ministry reports 87% of spring grain planting is complete, with Kiev adding grain traders are “reluctant” to sign long term contracts because of political uncertainties. Japan is tendering for 97,800 tons of U.S. and Australian milling wheat.
Except for a few token bids in the South at 142.00, the cash cattle market remained very quiet. Asking prices are firm at 148.00 in the South and 240.00 plus in the North. Significant trade volume will likely be delayed until Thursday or Friday. The kill totaled 117,000 head, 3,000 less than last week and 7,000 smaller than 2013.
Boxed beef cutout values were lower on choice and steady on select on moderate demand and moderate to heavy offerings. Choice boxed beef was down 1.53 at 225.08 and select was .07 lower at 215.46.
Live cattle contracts settled 40 to 82 points higher on the Chicago Mercantile Exchange on Wednesday. Moderate to strong support developed across the complex despite no news from the cash market and weakening beef values in the morning report. Even with the renewed support in the market, the inability to break out of current market ranges may have limited longer term support for the overall market. June settled .45 higher at 137.45, and August was up .55 at 138.40.
Feeder cattle settled 45 to 115 points higher as traders continue to focus on still tight cattle supplies over the long term. A portion of the recent rally is expected to be associated with pre-report positioning ahead of the cattle on feed report due for release Friday afternoon. Lower corn values were also supportive to feeder futures. May settled .67 higher at 185.40, and August was up .77 at 192.45.
Feeder cattle receipts at the Ozark’s Regional Stockyards at West Plains, MO totaled 2295 head on Tuesday. Compared to last week, feeder steers and heifers traded 3.00 to 5.00 higher with yearling steers and heifers fully 10.00 higher with spots of up to 15.00 higher. Demand was moderate early in the sale and increased sharply as large packages of high quality feeders and yearlings continued to enter the ring throughout the afternoon. Feeder steers medium and large 1 averaging 528 pounds traded at 229.04 per hundredweight. Heifer’s averaging 428 pounds brought 228.30.
Lean hog contracts settle 152 higher to 100 points lower as aggressive buyer support flooded back into the market. Once again the recent rally seemed to be tied to supply tightness of summer ready hogs due to PED, even though very little additional market direction or news has developed through the market. The August contract hit the daily trading limit of $3.00 during the morning session but closed 1.52 higher. June hogs settled .97 higher at 120.57 and July was up 1.50 at 126.90.
Barrows and gilts in the Iowa/Minnesota direct trade closed .58 lower with a weighted average of 109.33 on a carcass basis, the West was down .54 at 109.22, and in the East the market was not reported due to confidentiality. Missouri direct base carcass meat price was steady to 3.00 higher from 97.00 to 100.00. Terminal hogs were 1.00 lower to 1.00 higher from 72.00 to 80.00 live.
The pork carcass cutout value FOB plant was up 1.30 at 112.92 in the afternoon report.
PEDv losses in Mexico, South Korea, and Japan have caused domestic prices to soar significantly higher than the cost of importing U.S. pork. Such a reality has supported U.S. exports through the first third of 2014 and will probably continue to do so for months to come.
Wednesday’s hog kill was estimated at 411,000 head, 5,000 more than last week, but 2,000 less than last year.
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