Soybeans were higher on commercial and technical buying. USDA’s outlook forum projects soybean planting at 79.5 million acres, less than what many private firms were expecting, so it looks like beans are trying to buy some acreage. The fundamentals are solid and the trade’s watching South American weather. Soybean meal was mostly higher on the solid demand outlook and bean oil was up on the positive tone in the soybean complex.
Corn was higher on short covering, commercial buying, and spillover from beans. USDA sees corn acreage at 92 million acres, down from last week’s baseline projection, farmer selling is slow, and political unrest in Ukraine could mean increased exports. Still, there’s a lot of corn available, keeping fundamentals pretty much bearish. Ethanol futures were lower.
The wheat complex was mostly higher, with Minneapolis leading the way up on the slow movement in Canada. USDA sees wheat planting at 55.5 million acres, down on the year, and fundamentals are basically neutral. Past that – there was no real fresh fundamental news. The trade’s keeping an eye on weather around the U.S. Plains and Black Sea region.
There was light to moderate packer inquiry in the cattle on Thursday afternoon with some improvement in dressed bids noted in parts of Nebraska at 224.00 to 225.00. Most packers are short bought but it remains to be seen when procurement will develop. Asking prices are around 145.00 in the South and 230.00 plus in the North. At this time country bids are no worse than steady with last week. The slaughter totaled 115,000 head, 6,000 more than last week and 22,000 greater than last year.
Boxed beef cutout values were generally steady on moderate demand and offerings. Choice beef was up .47 at 214.32, and select was .13 lower at 211.36.
Live cattle contracts settled 5 to 72 points higher on Thursday. Futures bounced higher and lower through the morning with secure support hard to find. The morning moderate losses did improve to moderate gains by midday, but trade was choppy throughout the session as traders looked for additional long term support. February settled .72 higher at 144.60, and April was up .05 at 141.87.
Feeder cattle ended the session 5 to 65 points lower after futures backed away from initial support despite the support seen in the live pit. The front month contract was near unchanged, although moderate losses developed through the remainder of the complex. The softening in boxed beef values and light gains in corn eroded any underlying support in the market. March feeders settled .05 lower at 171.12, and April was down .65 at 171.80.
Feeder cattle receipts at the St. Joseph, Missouri Stockyards totaled 3875 head on Wednesday. Compared to last week feeder steers and steer calves sold firm to 5.00 higher with instances as much as 7.00 higher especially on middle weights 500 to 800 pounds. All weights of heifers traded 3.00 to 6.00 higher with many spots up to 10.00 higher. The offering was impressive with many long strings of top quality cattle with attractive weighing and flesh conditions. Feeder steers medium and large 1 with an average weight of 720 pounds brought 179.78 per hundredweight. 582 pound heifers averaged 183.97.
Lean hog contracts settled 5 to 62 points higher as firm buying support jumped into the April futures contracts following moderate early morning pressure. The focus on firmer pork values during morning trade as well as spillover support from live cattle contracts added to the shift in the market direction. April hogs were .62 higher at 97.82, and May was up .17 at 105.90.
Barrows and gilts in the Iowa/Minnesota direct trade closed 2.82 higher with a weighted average of 92.90 on a carcass basis, the West was up 2.56 at 92.41, and the East ended the day at 87.54 with no price comparison. Missouri direct base carcass meat price was 1.00 to 3.00 higher from 82.00 to 84.00. Terminal hogs were steady from 58.00 to 60.00.
The pork carcass value FOB plant was up 2.71 at 97.68 with all primals higher.
The average weight of Iowa barrows and gilts increased to 281.2 pounds last week. While that’s only slightly higher than the previous week, it totaled 5.9 pounds greater than 2013. Given the premium status of spot lean futures, finishing floor profits, and economical feed costs, weights should stay well above last year for the foreseeable future.
The Thursday hog slaughter at 423,000 head is 41,000 more than last week and 21,000 greater than last year.
