Soybeans were higher on fund and commercial buying. China bought 243,000 tons of new crop U.S. beans, following up on Monday’s big purchase of old crop. Past that – the trade continues to watch weather around South American growing areas. Soybean meal was higher, following beans, and bean oil was mostly firm.
Corn was modestly lower on fund and technical selling. Corn’s also looking at solid demand and that should show up in next week’s USDA numbers. However, there’s a pretty big supply and contracts were just unable to follow through after a firm start. Ethanol futures were lower.
The wheat complex was higher on fund and speculative buying. The trade’s keeping an eye on the bitterly cold temperatures around the U.S. winter wheat growing region with little or no snow cover in many areas. It may not cause a lot of damage, but the trade is cautious right now. DTN reports Algeria bought 450,000 to 500,000 tons of optional origin milling wheat.
USDA Mandatory reported a light cattle trade in Kansas on Tuesday on moderate to good demand. Compared to last week early live sales were 3.00 to 4.00 higher at 169.00 to 170.00. DTN called the early week action a bullish surprise. They reported a few deals in the North at 169.00 with some packers bidding 170.00 in both Central and Western Nebraska. A few cattle sold on a dressed basis at 270.00 to 271.00 in Iowa and Nebraska. Such buying aggressiveness so early in the week suggests a perception of tight ready numbers and or significantly improving beef demand. The kill totaled 112,000 head, 1,000 below last week, but 3,000 more than last year.
Boxed beef cutout values were firm on choice and weak on select on light to moderate demand and offerings. Choice beef was up .97 at 250.33, and select was down .38 at 240.05.
Chicago Mercantile Exchange live cattle contracts settled 20 to 200 points lower. Strong losses were evident in the live cattle futures, although they did pull back from session lows. The majority of the market softness was in the deferred contracts, which took into account the aggressive losses through the feeder cattle market. February settled 200 points lower at 166.02, and April was down .45 at 165.00.
Feeder cattle ended the session 97 to 312 points in the red, but off the day’s lows when the market posted losses of $4.00 or greater. There is uncertainty in the outside markets as the Dow Jones held onto another strong loss. January settled .97 lower at 224.70, and March was down 2.50 at 220.87.
Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 6300 head. Compared to the last sale on December 15th, feeder steers were 6.00 to 10.00 higher, with steers over 800 pounds up to 15.00 higher. Feeder heifers were steady to 5.00 lower. Steer calves 5.00 to 6.00 higher, heifer calves 3.00 to 10.00 lower with the greatest decline on the five weights. Demand was moderate to good for feeder and stocker cattle, moderate for calves. Feeder steer calves medium and large 1 weighing 500 to 550 pounds traded from 285.00 to 298.50. Heifer calves weighing 5 to 550 pounds brought 253.00 to 264.00.
Lean hogs settled 27 to 147 points lower on follow-through pressure from both cattle market losses and outside market softness that created uncertainty about both the ability to move current supplies and overall demand growth. February settled 1.35 lower at 78.57 and April was down 1.45 at 81.35.
There was slow hog market activity with light demand on Tuesday. Barrows and gilts in the Iowa/Minnesota and Eastern direct trade were not reported due to confidentiality. Western hogs were down .88 at 73.73 weighted average on a carcass basis. Nationally the market was .61 lower at 72.15. Missouri direct base carcass meat price was steady from 59.00 to 71.00. Midwest hogs on a live basis closed steady to 1.00 lower from 47.00 to 60.00.
The pork carcass cutout value was down .89 at 82.41 FOB plant. Picnics were over $7.00 lower.
Although reported cash hog sales were lower to start the week, negotiated trade volume was extremely light. With extremely low temperatures expected to blanket production country for most of the week, hog buyers may soon find it necessary to become more aggressive in terms of procurement.
Hog slaughter was estimated at 425,000 head, 8,000 less than last week, but 51,000 more than last year.
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