Mar. corn closed at $4.30 and 1/2, up 5 and 1/2 cents
Jan. soybeans closed at $13.27, up 3 cents
Jan. soybean meal closed at $442.10, up 90 cents
Jan. soybean oil closed at 39.33, up 27 points
Mar. wheat closed at $6.10 and 3/4, down 2 cents
Dec. live cattle closed at $131.80, up 85 cents
Feb. lean hogs closed at $86.37, up 2 cents
Jan. crude oil closed at $98.77, up 97 cents
Mar. cotton closed at 83.33, up 33 points
Jan. Class III milk closed at $19.45, up 23 cents
Dec. gold closed at $1,195.00, down $41.10
Dow Jones Industrial Average: 16,179.08, up 11.11 points
For additional futures prices and charts click http://www.farms.com/markets
Market News Update
Soybeans were higher on short covering and technical buying, along with commercial spread adjustments inside the pit. Weekly export sales and shipments were both above what’s needed weekly to meet USDA projections for the current marketing year. Argentina and southern Brazil continue to see hot, dry conditions, but it’s probably too early to get too concerned. Still, keep an eye on South American conditions as we head into January. Soybean meal and oil were higher, following the lead of beans.
Corn was higher on technical buying and short covering. Weekly export sales were larger than expected, but it was a relatively slow week for the shipments, leaving the report neutral to bearish. There were a pair of new export sales with South Korea buying 130,000 tons for 2013/14 delivery and unknown picking up a total of 127,536 tons, 111,280 tons of that for delivery this marketing year. Corn’s also watching South American weather. Ethanol futures were higher.
The wheat complex was lower on technical selling and the higher dollar. Weekly wheat numbers also look neutral to bearish with a good week for sales and a slow week for the shipments. Past that – there was no fresh news, U.S. development conditions look good, and the world crop is up on the year. Strategie Grains projects the 2014 European Union soft wheat crop at 138 million tons, up 2% on the year, with a 4% increase in planted area. CBH Group, via Dow Jones Newswires, reports Western Australia’s 2013/14 grain crop is a record with year to date wheat deliveries at 9.2 million tons. According to DTN, Brazil bought 50,000 tons of U.S. hard red winter wheat, while Tunisia picked up 100,000 tons of optional origin soft wheat and 84,000 tons of optional origin durum.
USDA Mandatory reported negotiated cash cattle trade was light on light to moderate demand in the Southern Plains. Live sales were 1.00 lower at 130.00. Cattle trading in Nebraska was light on light demand with a few early live sales at 130.00 and a few dressed sales at 207.00. Trading was inactive in the Iowa/Minnesota and Colorado regions. Asking prices in the North remain at 210.00. Thursday’s slaughter was estimated at 121,000 head, 5,000 more than last week and 3,000 greater than last year.
Boxed beef cutout values were weak on choice, firm on select on very light to light trade. Choice boxed beef was down .47 at 197.71, and select was up .40 at 188.78.
Live cattle contracts on the Chicago Mercantile Exchange settled 20 to 85 points higher. Moderate buyer activity once again developed across live cattle futures. The latest bounce in prices has helped to stabilize the weekly chart in both the February and April contracts. This could draw additional light support into the market by the end of the week. Some traders will be doing some pre cattle on feed report positioning before its release on Friday afternoon. December settled .85 higher at 131.80, and February was up .62 at 132.97.
Feeder cattle ended the session 72 to 97 points higher. The moderate to firm gains trickled back into the market with additional strength evident in the deferred months. The focus on continued tight beef supplies and feeder cattle numbers through the middle of next year helped to keep overall markets higher. A higher corn market appeared to not limit buyer activity in feeder cattle futures. January settled .75 higher at 166.80 and March was up .70 at 166.55.
Feeder cattle receipts at the Huss Platte Valley Auction in Nebraska totaled 5180 head. Compared to a week ago steers sold 1.00 to 4.00 higher and heifers traded 2.00 to 3.00 higher. Bidding was fast paced from start to finish from a large crowd of buyers on a warm sunny December day. Several large strings and packages of ling time weaned calves with a few bawling calves in the mix. Feeder steers medium and large 1 averaging 677 pounds traded at 179.53 per hundredweight 624 pound replacement heifers averaged 187.32.
Lean hogs settled 2 to 40 points higher. The lack of aggressive support after Wednesday’s firm gains seemed to be somewhat disappointing and appeared to limit additional market support. But given the continued pressure in both cash hog markets and the wholesale pork values, the lack of strong support is understandable. February settled .02 higher at 86.37 and April was also up .o2 at 91.20.
There was slow market activity with light demand in the direct trade hogs. The Iowa/Minnesota barrows and gilts closed 1.73 lower, the West was down 1.58 with a weighted average of 74.97 on a carcass basis in both regions. Eastern markets were down .69 at 77.22.Missouri direct base carcass meat price closed steady from 72.00 to 73.00. Terminal hogs were 1.00 to 2.00 lower from 51.00 to 56.00.
The pork carcass value was 2.59 lower FOB plant in the afternoon report at 86.45 on a negotiated basis.
Moderate pressure in cash hog values continues to place the emphasis on uncertain pork demand and readily available supplies heading into the holidays. This could limit any end-of-year market rally, with the tone of the market still remaining extremely weak.
The hog kill was estimated by USDA at 436,000 head, the same as last week, but 89,000 more than last year.
