Monday's Closing Grain & Livestock Futures Prices
May corn closed at $5.03 and 1/4, up 9 and 1/4 cents
May soybeans closed at $14.72, down 8 and 3/4 cents
May soybean meal closed at $489.10, down $2.10
May soybean oil closed at 40.98, down 31 points
May wheat closed at $7.21 and 1/4, up 13 and 1/2 cents
Jun. live cattle closed at $137.52, down 52 cents
Jun. lean hogs closed at $122.35, up 12 cents
Jun. crude oil closed at $99.48, down 28 cents
Jul. cotton closed at 94.75, up 43 points
May Class III milk closed at $22.81, up 6 cents
Jun. gold closed at $1,309.30, up $6.40
Dow Jones Industrial Average: 16,530.55, up 17.66 points
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Market News Review
Soybeans were mixed on old crop/new crop spread trade. Nearbys were weak, with traders concerned about demand at current price levels, but reluctant to sell off too far. Also, there’s a lot of uncertainty tied to U.S. imports; they’re coming in, but the question is if they’ll be enough to meet demand. New crop was up, getting ready for USDA’s supply and demand report out Friday. USDA reports 5% of soybeans are planted, compared to 2% last year and the five year average of 11%. Soybean meal was mixed, with old crop down and new crop up, and bean oil was lower on spillover from crude oil.
Corn was higher on fund and speculative buying. Most of the Midwest should see better planting weather, but north-central areas remain cool and wet, with more rain in the forecast for later this week. Corn’s also waiting for Friday’s supply and demand update, which will have USDA’s first new crop projections. According to USDA, 29% of corn is planted, compared to 11% a year ago and 42% on average, while 7% has emerged, compared to 13% on average. Ethanol futures were lower.
The wheat complex was higher on fund and speculative buying. The trade’s watching renewed tensions in the Black Sea region, along with hot weather in the Southern Plains and planting delays in the Northern Plains. For winter wheat, 29% is headed, compared to 35% on average, with 31% of the crop rated good to excellent, down 2% on the week. For spring wheat, 26% is planted, compared to 41% on average and 7% has emerged, compared to 17% on average. Statistics Canada reports wheat stocks as of March 31 were 21.251 million tons, compared to 14.469 million last year. Egypt bought 110,000 tons of wheat from Ukraine and Russia, while Saudi Arabia picked up 590,000 tons of optional origin hard and soft milling wheat.
Cattle country was quiet on Monday afternoon following the distribution of the new showlists. The early May offering appears to be generally smaller especially in Colorado. Though asking prices are not well defined a few showlists have been priced around 148.00 in the South and 240.00 plus in the North. The kill was estimated at 120,000 head, 6,000 more than last week, but 3,000 smaller than last year.
Boxed beef cutout values were firm on choice and lower on select on light to moderate demand and offerings. Choice beef was up .52 at 228.90 and select was 2.02 lower at 215.45.
Live cattle contracts on the Chicago Mercantile Exchange settled unchanged to 52 points lower in Monday’s action. The market had seen gains near midday but turned lower on concerns that higher grain prices would lead to poor profit margins for producers. June settled .52 lower at 137.52 and August was down .10 at 137.25.
Feeder contracts were pressured in the front months by the renewed support in corn prices. Moderate positioning was seen late in the session. May settled .85 lower at 182.65 and August was down .52 at 189.80.
Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 9800 head. Compared to last week feeder steers and heifers opened firm. Demand remains very good for feeder cattle. Steer and heifer calves traded firm. Feeder steer calves medium and large 1 weighing 500 to 575 brought 220.50 to 228.50. Yearling steers weighing 720 pounds to 750 brought 189.00 to 192.50. Heifer calves weighing 550 to 595 pounds traded from 192.50 to 199.50. And 605 to 615 yearlings traded from 190.50 to 192.75.
Lean hogs settled unchanged to .97 higher as moderate support developed through all but the lightly traded May contract which ended lower. The expectations that pressured the market last week may have limited the volume of the market bears over the short term, and firm follow-through support in deferred contract months helped to stabilize the market. Higher pork values at midday leant support to futures. May settled .32 lower at 116.90, but June was up .12 at 122.35.
There was slow hog market activity with light demand on Monday afternoon. Barrows and gilts in the Iowa/Minnesota direct trade closed 1.09 higher with a weighted average of 113.31, the West was up .97 at 113.06, and the East was not reported due to confidentiality. Missouri direct base carcass meat price closed 5.00 to 6.00 lower from 95.00 to 96.00. Midwest hogs were steady to 1.00 lower from 73.00 to 80.00.
The pork carcass cutout value was 2.05 higher at 116.02 FOB plant on a negotiated basis.
The hog kill last week totaled 2.019 million head, up 1.0% from the week before and down 3.4% compared to the same week last year. Since March 1, slaughter has lagged behind 2013 by 5.7%, somewhat smaller than the last quarterly inventory, but not significantly so.
Monday’s hog kill was estimated at 386,000 head 42,000 more than last week, but 14,000 less than last year.
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