Wednesday's Closing Grain and Livestock Futures
Mar. corn closed at $4.25 and 3/4, down 5 and 3/4 cents
Mar. soybeans closed at $13.18, up 11 cents
Mar. soybean meal closed at $434.50, up $4.40
Mar. soybean oil closed at 37.99, up 23 points
Mar. wheat closed at $5.67 and 3/4, down 11 and 1/2 cents
Feb. live cattle closed at $139.42, up $1.77
Feb. lean hogs closed at $86.60, up 60 cents
Feb. crude oil closed at $94.17, up $1.58
Mar. cotton closed at 84.79, up 106 points
Jan. Class III milk closed at $20.83, up 11 cents
Mar. gold closed at $1,238.60, down $7.20
Dow Jones Industrial Average: 16,481.94, up 108.08 points
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Agri Commodities Market News Review
Soybeans were mixed on old crop/new crop spread trade, with nearbys up and deferreds down. China bought 106,000 tons of new crop U.S. beans and the near term supply remains tight. There’s more hot and dry weather around Argentina, but some forecasts for next week show a much better weather pattern. Soybean meal was mixed on old crop/new crop adjustments and bean oil was up on spillover from crude oil. The National Oilseed Processors Association reports member firms crushed 165.384 million bushels of soybeans in December, up on the month and larger than what the trade was anticipating. Soybean oil stocks totaled 1.681 billion pounds, above November and larger than expected, but well below December 2012. USDA’s weekly export sales report is out Thursday at 8:30 AM Eastern/7:30 AM Central. Soybeans are pegged at 600,000 to 1.05 million tons, meal is seen at 50 to 150,000 tons, and oil is placed at 0 to 60,000 tons.
Corn was lower on fund and technical selling. There was no fresh supportive news and even if last week’s USDA numbers were bullish, there’s a lot of corn available, which should keep contracts in a sideways to lower trend. Corn’s also watching South American weather, especially the chances for rain in Argentina. Ethanol futures were lower. France’s Agrimer projects 2013/14 corn production at 14.820 million tons, compared to 15.341 million in 2012/13. Weekly U.S. corn sales are expected to be between 200,000 and 600,000 tons.
The wheat complex was lower on technical and fund selling, in addition to the higher dollar, with contracts closing around three and a half year lows. There was also no fresh news for wheat and U.S. and world crop development conditions generally look good at this time. Additionally, there’s increasing talk that India could produce a record crop. Egypt issued a tender for an unspecified amount of wheat late Wednesday. France’s Agrimer estimates 2013/14 soft wheat production at 36.835 million tons, compared to 35.623 million a year ago, with exports to non-E.U. nations seen at 11.5 million tons. Weekly U.S. wheat sales are projected at 200,000 to 600,000 tons.
USDA Mandatory reported cattle trading was very light in Texas, Oklahoma and New Mexico on moderate to good demand. Compared to last week, early live sales were 3.00 higher at 142.00. Some producers in those three states were passing on current bids. Trading was light with light demand in Kansas, compared to last week, live sales have sold 2.00 to 3.00 higher from 141.00 to 142.00 reportedly a new record price. There were some dressed sales in Kansas at 223.00. Trading was light in Eastern Nebraska on good demand, dressed sales were 4.00 to 5.00 higher at 226.00 to 227.00. Dressed sales in Iowa were 5.00 to 6.00 higher at 225.00 to 226.00 Live sales in Iowa at 142.00. Wednesday’s cattle slaughter is estimated at 116,000 head, 1,000 more than last week, but 9,000 less than last year.
Boxed beef cutout values were sharply higher on fairly good demand and light offerings. Choice boxed beef is up 3.58 at 224.62, and select is 2.56 higher at 221.91.
Live cattle contracts on the Chicago Mercantile Exchange settled 35 to 177 points higher as sharp gains redeveloped in the February and April contracts with traders pushing prices higher through much of the session. Traders focused on the potential for higher cash cattle trade as well as the ability to keep putting aggressive gains on boxed beef values. February settled 1.77 higher at 139.42, and April was up 1.15 at 138.95.
Feeder cattle ended the session 80 to 125 points higher on the triple digit gains in the live cattle complex as well as continued softness through the corn market. January settled .80 higher at 169.40 and March was up 1.20 at 168.02.
Feeder cattle receipts at the Loup City Commission Company at Loup City, Nebraska totaled 3,000 head on Tuesday. Compared to last week steers and heifers weighing less than 650 pounds sold 2.00 to 6.00 higher, over 650 pounds were mostly steady. Demand was good to very good for offerings suited for summer turn out with good demand for feedlot placements. Feeder steers medium and large 1 averaging 587 pounds brought 188.47 per hundredweight. 621 pound heifers traded at an average of 173.50.
Lean hogs settled 17 to 87 points higher. Even though morning reports showed little to no support in either the cash hog or pork carcass values, traders continued to overlook those reports and follow the direction of the outside markets. The sharply higher cattle futures created strong buyer support in the nearby lean hog futures. Contracts fell from session highs, but remained bullish. February settled .60 higher at 86.60 and April was up .87 at 91.55.
There was moderate hog market activity and demand on Wednesday. Barrows and gilts in the Iowa/Minnesota direct trade closed .04 lower at 76.63 on a carcass basis, the West was up .26 at 78.58, and the East was 1.45 higher at 76.62. Missouri direct base carcass meat price was steady to 4.00 lower from 71.00 to 73.00. Terminal hogs were steady to 1.00 lower from 51.00 to 59.00 live.
The pork value FOB plant on a negotiated basis was down .94 at 84.96 in the afternoon report.
The Wednesday hog slaughter was estimated at 429,000 head, 4,000 more than last week and 2,000 greater than last year.
