The wheat complex was higher on technical buying and short covering. Tuesday’s USDA numbers were bearish wheat with bigger domestic and international ending stocks, but, with corn seeing a bounce, wheat followed, and there are concerns about cold stress in the Plains. Past that – the trade’s waiting on tender results from Iraq, after Egypt bypassed U.S. wheat again this week, in favor of 300,000 tons from France and Romania. Japan passed on all offers on a sell-buy-sell tender for 120,000 tons of feed wheat. France’s Agrimer estimates 2013/14 soft wheat production at 36.839 million tons, compared to 35.623 million in 2012/13, with hard/durum wheat at 1.735 million tons, compared to 2.366 million last year. Ukraine’s Ag Ministry reports 99% of wheat is harvested at 63.202 million tons.
Feedlot country remained untested on Wednesday afternoon with just a few starter bids scattered around the feeding area at 129.00 live in the South and 206.00 in the North. Asking prices are firm at 134.00 in the South and 210.00 to 212.00 in the North. Significant trade volume will be delayed until Thursday or Friday. The slaughter was estimated at 122,000 head, 1,000 less than last week and 1,000 more than 2012.
Boxed beef cutout values were firm on the choice and lower on select on moderate demand and light to moderate offerings. Choice boxed beef was up .49 at 202.61, and select was down .91 at 197.10.
Live cattle contracts on the Chicago mercantile Exchange settled unchanged to 80 points higher. The bounce higher in choice beef at midweek seemed to create some stability in the market. The losses in hog futures had an effect on overall buying interest through the cattle complex. December settled .22 higher at 131.90, and February was up .15 at 132.80.
Feeder cattle ended the session mostly 2 to 25 higher. The early weakness in live cattle futures and rising corn prices affected the nearby feeder cattle futures. Deferred futures held onto moderate gains with expected support through the end of 2014. Trade volume remained subdued as the majority of traders watched for additional direction from outside markets. January settled .12 higher at 165.67, and March was up .02 at 165.50.
Feeder cattle receipts at the St. Joseph, Missouri Stockyards on Wednesday totaled 2300 head. Compared to the previous week, feeder steers and heifers weighing 400 to 650 pounds opened fully steady to 3.00 higher. 550 to 600 pound steers traded from 185.00 to 190.00 per hundredweight. 550 to 600 pound heifers brought 157.00 to 158.00.
Lean hogs settled 55 higher to 95 lower. The lean contracts settled off the day’s lows that saw triple digit losses earlier in the session. Pressure in the market triggered technical sell stops and caused widespread liquidation through the complex early in the session. Futures tumbled to multi-month lows on expectations that pork production will trend higher than normal in the near term. December settled .10 higher at 80.92, and February was down .95 at 87.77.
Barrows and gilts in the Iowa/Minnesota direct trade closed 1.21 higher at 78.63 on a carcass basis, the West was up .71 at 78.20, and Eastern barrows and gilts were .04 lower at 77.72. Missouri direct base carcass meat price closed 1.00 to 2.00 higher from 73.00 to 76.00. Terminal hogs were fully steady from 53.00 to 56.00.
The pork carcass value was down 1.25 at 90.40 FOB plant in the afternoon report.
Light country movement so far this week suggests hog buyers will have to increase spending efforts to fund late-week slaughter plans.
Wednesday’s hog slaughter was estimated at 435,000 head, 2,000 more than last week and 8,000 greater than last year at this time.
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