Soybeans were higher on fund and commercial buying. Prices started the session near the lowest level in three months and overall demand remains strong. Past that – the trade’s watching weather in South America, with some dry weather and high temperatures in parts of Brazil. Many in the trade do expect a lower Brazilian production estimate from USDA next week, but it should still be a record crop, and by a pretty good margin. Soybean meal and oil followed beans higher.
Corn was higher on fund and commercial buying. Corn’s was also right around three month lows, attracting that commercial interest. Corn’s also watching development weather in South America, along with winter conditions in the U.S. Ethanol futures were higher. According to wire reports, China is planning to move away from the current stockpile policy and move more towards a market based domestic grain price policy.
The wheat complex was higher on fund and commercial buying. Outside markets, especially the mostly lower dollar, were a factor as well for wheat, corn, and soybeans. Wheat was around four month lows and winter wheat conditions have declined slightly over the past month in Kansas and Oklahoma. Still, ratings improved for Illinois and fundamentals remain bearish. Japan is tendering for 112,900 tons of food wheat from the U.S. and Canada, while Egypt is in the market for an unspecified amount of wheat.
The feedlot cattle trade was untested on Tuesday afternoon with both bids and asking prices poorly defined A few showlists have been priced around 164.00 plus in the South and 250.00 plus in the North This week’s showlists appear to be somewhat larger than last week. The cattle slaughter was estimated at 112,000 head, 1,000 more than last week, but 4,000 less than last year.
Boxed beef cutout values are firm on choice and weak on select on light to moderate offerings. Choice boxed beef is up .50 at 243.11, and select is .46 lower at 235.14.
Chicago Mercantile Exchange live cattle contracts settled 17 to 97 points higher on Tuesday. Futures bounced higher at midday as they came back from moderate losses earlier in the session. Strong support from boxed beef values in the morning report helped to build some stability in the market. The lack of follow through pressure in feeder cattle markets helped to draw some stability into the nearby live cattle futures. February settled .55 points higher at 153.75, and April was up .97 at 150.57.
Feeder cattle settled 5 to 120 points lower as they bounced off session lows. There is very little fundamental direction seen in the recent market slide as traders continue to adjust to the concern in cattle numbers last year. March was down 1.20 at 199.50, and April was 1.00 lower at 199.90.
Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 4300 head. Compared to last week, feeder steers weighing less than 800 pounds traded 8.00 to 12.00 higher. Feeder steers weighing over 800 pounds traded steady to 4.00 higher. Feeder heifers traded mostly 2.00 to 6.00 higher, with instances of 9.00 higher on 600 to 650 pound heifers. Steer and heifer calves were mostly 5.00 to 15.00 higher. Feeder steers, medium and large 1 averaging 868 pounds averaged 191.88 per hundredweight. 686 pound heifers brought 199.34.
Lean hogs settled mostly lower with only the February contract higher. The lack of support in the complex remained centered on the early aggressive losses in feeder cattle trade. Pork cutout values were sharply lower again at midday and that weighed on the hog futures. February settled .87 at higher at 67.20, and April was down .05 at 70.87.
Barrows and gilts in the Iowa/Minnesota direct trade closed .80 lower at 64.87 weighted average on a carcass basis, the Western trade was down 1.00 at 64.64, and the East was not reported due to confidentiality. Missouri direct base carcass meat price was steady to 1.00 lower from 53.00 to 61.00. Midwest hogs were fully steady on a live basis from 40.00 to 48.00.
The pork carcass cutout value was sharply lower in the afternoon report at 76.25 down 2.23 FOB plant. All cuts were lower.
The spread between the cash hog index and the pork carcass value remains more than $10, implying outstanding processing margins and ample incentive for packers to support cash bids and relatively aggressive chain speed.
Tuesday’s hog slaughter is estimated at 433,000 head, 16,000 more than last week, and 8,000 greater than last year.
Click here to see more...