Closing Grain and Livestock Futures Prices
Mar. corn closed at $4.23 and 1/2, up 3 cents
Jan. soybeans closed at $12.89 and 1/4, up 2 and 1/4 cents
Jan. soybean meal closed at $424.50, up 70 cents
Jan. soybean oil closed at 38.34, down 17 points
Mar. wheat closed at $6.05 and 3/4, up 8 and 3/4 cents
Feb. live cattle closed at $136.30, up 67 cents
Feb. lean hogs closed at $86.67, down 40 cents
Feb. crude oil closed at $93.96, down $1.48
Mar. cotton closed at 82.94, down 110 points
Jan. Class III milk closed at $20.06, up 40 cents
Jan. gold closed at $1,238.40, up $13.40
Dow Jones Industrial Average: 16,469.99, up 28.64 points
Market News and Review
Soybeans were higher on technical buying and spillover from wheat. Crop development conditions around South America generally look good and the trade expects Brazil to produce more than the U.S. this year. Weekly export numbers are solid, but the trade's more focused on getting ready for the January 10 USDA reports. Friday, Informa issued its pre-report estimate of 2013 U.S. soybean production at 3.33 billion bushels. Soybean meal was higher and bean oil was lower on the adjustment of product spreads.
Corn was higher on technical buying and spillover from wheat. Weekly export sales were below all estimates and less than what's needed to meet USDA's projection for the marketing year, but shipments were good. Past that – corn's watching the recent record high cash cattle prices and getting ready for the upcoming USDA numbers. Friday, Informa Economics projected 2013 U.S. corn production at more than 14.2 billion bushels. Ethanol futures were higher.
The wheat complex was higher on commercial and fund buying. DTN reports the cash basis has been firming up and there are signs that domestic commercial traders are looking to buy feed wheat. That said – weekly export numbers were bearish and export demand remains slow. Egypt bypassed U.S. wheat again this week. U.S. supplies are competitively priced, but Cairo's buying from closer exporters due to high U.S. freight rates. Algeria tendered for 50,000 tons of optional origin wheat.
Cattle country was quiet on Friday afternoon with record trading competed for the week. There was a light clean up trade in Nebraska at 139.00. This marks the second week that cattle have sold at all-time highs. It doesn't take much of an imagination to predict that feedlot managers will be pricing cattle significantly higher again on Monday, The weekly kill totaled 521,000 head, 92,000 greater than the previous week, and 2,000 above 2013.
Boxed beef cutout values closed higher on light to moderate demand and light offerings. Choice boxed beef was up 1.86 at 202.41, and select was up 1.33 at 197.38.
Live cattle futures on the Chicago Mercantile Exchange settled 12 to 77 points higher. Every step higher at these levels constitutes history in the making. The moderate gains were supported by follow through buying interest, the premium status of feedlot cattle, and technical bullishness. Beef cutouts were also significantly higher in the morning report. February settled .67 higher at 136.30 and April was .77 higher at 136.57.
Feeder cattle ended the session 20 to 110 points higher. Feeders rolled along with the live pit, picking up a step or two lost to their counterparts on Thursday. January settled .62 higher at 167.62 and March was up 1.10 at 168.10.
Feeder cattle receipts at Missouri Auctions this week totaled 13,903 head. Compared to two weeks ago feeders weighing less than 650 pounds sold steady to mostly 10.00 higher those over 650 pounds were steady to mostly 5.00 higher. Receipts were light as many auctions remained dark between the holidays. Feeder steers medium and large 1 averaging 519 pounds averaged 181.13 per hundredweight. 779 pound steers traded at 167.48. 576 pound heifers averaged 166.74. 767 pound heifers brought 156.25 at Missouri Auctions.
Hog futures were mixed but mostly 5 to 40 lower. Profit taking after Thursday's higher market probably explains most of the action. But there wasn't much of technical significance in the trade. February settled .40 lower at 86.67 and April was down .22 at 91.57.
There was moderate hog market activity with moderate demand on Friday. Barrows and gilts in the Iowa/Minnesota direct trade closed .81 lower, the West was down .67 with both at 78.00 on a carcass basis. Eastern hogs were .56 lower at 76.28. Missouri direct base carcass meat price closed 2.00 higher at 73.00. Barrows and gilts at the terminals were steady to 2.00 higher from 51.00 to 60.00 live.
The pork cutout value FOB plant was 1.21 lower at 82.79 on a negotiated basis.
Laying down another round of higher bids on Thursday without generating a flood of country receipts, hog buyers seem to be finally falling into a seasonal pattern of greater spending as they work a smaller offering of market ready barrows and gilts.
The weekly hog slaughter was estimated at 2,011,000 head, 168,000 more than the previous week and 39,000 greater than 2013.
