Corn & Soybean Futures Prices Bounce Higher.

Jul 14, 2014

Monday's Closing Grain and Livestock Futures Prices


» Corn388-2+3-4
Feeder Cattle210.675s+0.300
Live Cattle147.800s-1.325
Lean Hogs130.350s+1.675

For  Futures prices and charts click

Agri Markets News Review

Soybeans were higher on oversold signals and commercial buying. Contracts were due for a bounce after a pretty bearish couple of weeks, but the long term fundamentals remain negative. USDA reports 41% of soybeans are blooming, compared to 37% on average, with 72% rated good to excellent, unchanged on the week, but with 1% moving from good to excellent. There are some weather concerns, but it’s too early to get too worried. Soybean meal was mostly higher, like beans, the exception was the now expired July, and oil was up. The NOPA member crush report for June is out Tuesday, with the average estimate at 119.5 million bushels.

Corn was higher on short covering and technical buying. Corn was also due for a bounce, but continues to look at generally negative fundamentals. The exception to the firm finish was the now expired July. Corn’s also keeping an eye on weather and the cooler conditions in the forecast this week. According to the USDA, 34% of corn is silking, compared to 33% on average, and 76% of the crop is in good to excellent condition, up 1% from a week ago. Ethanol futures were higher.

The wheat complex was higher on short covering and technical buying, along with the mostly lower dollar. Chicago led the way, expecting at least some new demand tied to the recent decline in price. July contracts in Chicago and Kansas City went off the board strong. For the winter crop, 69% has been harvested, compared to 68% on average. For spring wheat, 69% is headed, compared to 68% on average, with 70% of the crop in good to excellent shape, unchanged from last week. Israel is tendering for 50,000 tons of optional origin feed wheat.

The cash cattle market was very quiet on Monday afternoon following the distribution of the new showlists. Ready numbers appear to be generally smaller than last week. A few of the showlists have been priced around 158.00 in the South, and 248.00 to 250.00 in the North. The kill was estimated by USDA at 112,000 head, even with last week, but 6,000 smaller than last year.

Boxed beef cutout values were weak on light demand and light to moderate offerings. Choice beef was down .65 at 251.14 and select was .42 lower at 244.42.

Live cattle contracts on the Chicago Mercantile Exchange settled 22 to 132 lower. Pressure was evident in the especially in the nearby contracts as traders remained cautious given the aggressive pressure late last week. Although markets seemed to show a sense of stability Friday, August live futures developed the most pressure as losses of over a dollar held. Long liquidation and technical selling were features of the trade. August was down 1.32 at 147.80 and October was .80 lower at 150.85.

Feeder cattle ended the session 30 higher to 52 points lower. Feeder futures traded mixed in a moderate range with the August contract holding on to gains through the close based on the expectation that overall cattle supplies remain tight and buyers are still focusing on sourcing feeder cattle to put into yards through the summer months. August was up .30 at 210.67 and September was down .50 at 211.12.

Feeder cattle receipts at the Oklahoma National Stockyards totaled 6800 head on Monday. Compared to last week, steers and heifers opened steady on comparable sales. The quality was less attractive than last week with a larger percentage of the cattle showing Brahman influence. 500 to 550 pound steer calves traded from 239.00 to 245.000 per hundredweight. 575 to 600 pound fleshy heifer calves brought 214.00 to 217.00.

Lean hogs settled 57 to 192 higher. The session ended with strong triple digit gains in some nearby contracts but off the day’s highs when August and October were over 2.00 higher. The focus on tight hog supplies over the near term continues to keep buyers very close to the market and looking for additional market support. July was up .57 at 133.37 and August was 1.67 higher at 130.35.

Barrows and gilts in the Iowa/Minnesota direct trade closed 1.83 higher, the West was up 2.16 with a weighted average on a carcass basis at 133.02 in both regions. Eastern hogs were .16 higher at 129.17. Missouri direct base carcass meat price closed steady from 120.00 to 122.00. Barrows and gilts at Midwest markets were steady to an instance of 2.00 lower from 87.00 to 94.00 live.

The pork carcass cutout value was down .48 at 134.85 FOB plant in the afternoon report.

Last week’s hog kill totaled no more than 1,859,000 head, a full 9% smaller than 2013. The severe production damage linked to PEDv is finally becoming increasingly evident.

The Monday hog kill was estimated at just 368,000 head, 19,000 less than last week and 31,000 under last year.


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