Closing Grain and Livestock Futures Prices
Mar. corn closed at $4.43, down 1 and 1/4 cents
Mar. soybeans closed at $13.25 and 1/2, down 6 cents
Mar. soybean meal closed at $444.00, down $2.40
Mar. soybean oil closed at 38.73, up 17 points
Mar. wheat closed at $5.84 and 3/4, up 7 and 1/4 cents
Feb. live cattle closed at $141.50, up 30 cents
Feb. lean hogs closed at $86.35, down 22 cents
Mar. crude oil closed at $100.06, up 18 cents
Mar. cotton closed at 87.37, down 10 points
Feb. Class III milk closed at $22.89, up 2 cents
Mar. gold closed at $1,274.80, up $11.60
Dow Jones Industrial Average: 15,801.79, up 7.71 points
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Market News ReCap
Soybeans were lower on fund and commercial selling. USDA left domestic ending stocks unchanged with bigger exports against larger imports and lower residual use. On the international side, USDA lowered the numbers for Argentina, but raised expectations for Brazil and Paraguay. Soybean meal was lower and bean oil was steady to firm on the adjustment of product spreads. Bean meal also had direction from soybeans, while oil borrowed momentum from crude oil, with the nearby contract closing over $100 per barrel for the first time since late December.
Corn was lower on commercial and fund selling, in addition to spillover from beans. USDA made a larger than expected cut to domestic ending stocks on projected strong export demand, while increasing the average farm price, but supplies are still seen at four year highs. USDA also tightened the world balance sheet, mainly on reduced numbers for Argentina. The next set of supply and demand numbers is out March 10 and the 2014 prospective planting projections are scheduled for release March 31. Ethanol futures were higher.
The wheat complex was higher on fund and commercial buying. Domestic ending stocks were smaller than expected on increased projections for food and export use. Also, USDA lowered the world production and ending stocks numbers. Past that – the trade’s keeping an eye on winter wheat conditions around the U.S. and Black Sea region. According to Ukraine’s Ag Ministry, grain exports since the start of the marketing year July 1 are 22 million tons, up 33.3% from the same period last marketing year, with total exports projected at 32.5 million tons and total bunker weight at more than 63 million tons. DTN reports India currently has 290,000 tons of wheat on offer for export.
Cattle country was quiet on Monday as packers collected the new showlists. The new offering appears to be generally larger than last week with only Nebraska offering fewer ready cattle. Initial asking prices appear to be around 144.00 in the South and 210.00 to 212.00 in the North. The kill totaled only 92,000 head, 18,000 smaller than last week, and 27,000 below a year ago.
Boxed beef cutout values were mostly steady on light to moderate demand and offerings. Choice beef was up .39 at 211.16, and select was down .18 at 209.01.
Live cattle contracts on the Chicago Mercantile Exchange settled 30 points higher to 52 lower. Light support redeveloped in the February live cattle futures near midday while other nearby contracts closed with moderate losses. Monday was first notice day in the front month contract, which may be the main reason for the markets shift. Trade volume was sluggish to start the week. February settled .30 higher at 141.50, and April was down .22 at 140.17.
Feeder cattle ended the session 10 to 32 higher. Buyer support trickled back into the complex when the corn market was unable to hold on to initial gains. March settled .10 higher at 169.70 and April was up .27 at 168.80.
Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 3850 head. Compared to the previous week, all classes of feeder cattle and calves opened steady. Cold temperatures and a forecast of light snow across the state hampered livestock movement. Demand was moderate to good, and quality was low to mostly average. Feeder steers medium and large 1 weighing 625 to 660 pounds brought 172.00 to 178.00. Heifers weighing 715 to 740 pounds traded in a range of 153.00 to 155.00.
Lean hogs ended the session 60 points higher to 22 lower. Traders looked for direction from both the cash and meat values, and outside markets. Trade remained sluggish through the end of the session. February settled .22 lower at 86.35, and April was down .02 at 94.75.
Barrows and gilts in the Iowa/Minnesota direct trade closed .53 higher at 83.37 on a carcass basis, the West was up .35 at 83.16, and the East was .16 higher at 80.55. Missouri direct base carcass meat price was steady to 1.00 higher from 77.00 to 78.00. Terminal hogs closed 2.00 higher to 2.00 lower from 55.00 to 60.00.
The pork carcass value was 2.14 higher at 92.92 FOB plant in the afternoon report. There seems to be a growing consensus among hog buyers that market hog supplies are now tight and ready to steadily tighten over the next 30 days or so.
Record heavy hog weights will tend to moderate the magnitude of pork production declines should slaughter levels start trending below year prior levels.
Monday’s hog slaughter was estimated at 400,000 head, 28,000 less than last week and down 16,000 from last year.
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