Soybean Futures Prices Drop After USDA Report.

Dec 10, 2014

Wednesday's Closing Grain and Livestock Future

Dec. corn closed at $3.82 and 1/2, down 1/2 cent
Jan. soybeans closed at $10.32, down 17 and 1/4 cents
Dec. soybean meal closed at $405.20, down $6.40
Dec. soybean oil closed at 31.67, down 24 points
Dec. wheat closed at $5.93 and 1/4, down 7 and 1/4 cents
Dec. live cattle closed at $162.47, up 7 cents
Dec. lean hogs closed at $87.27, up 32 cents
Jan. crude oil closed at $60.94, down $2.88
Mar. cotton closed at 59.57, down 31 points
Dec. Class III milk closed at $17.87, up 2 cents
Dec. gold closed at $1,228.90, down $2.60
Dow Jones Industrial Average: 17,533.15, down 268.05 points

For more market prices and charts click

Market News Report

Soybeans were lower on fund and commercial selling, along with spillover from the outside markets. USDA made a larger than expected cut to U.S. ending stocks, but the number is still a lot bigger than last marketing year. Also, Brazil’s CONAB has raised its production guess to just under 96 million tons. Soybean meal and oil followed soybeans lower.

Corn was lower on fund and commercial selling. Analysts were expecting USDA to raise corn ending stocks, but they lowered the figure, taking it just below 2 billion bushels. Still, that is a lot of corn and Brazil’s CONAB raised its production guess. Unknown did buy 188,976 tons of 2014/15 U.S. corn ahead of the open. Ethanol futures were lower. For the week ending December 5, ethanol production averaged 988,000 barrels per day, up 2.7% on the week and 4.7% on the year.

The wheat complex was lower on fund and technical selling. USDA raised domestic ending stocks and the world numbers were bearish. The trade’s also watching weather and the potential for winterkill in the U.S. and Russia, but that mostly seems to be on the back burner. South Korea bought 81,200 tons of milling wheat from Australia. Japan is tendering for 143,300 tons of milling wheat from the U.S., Australia, and Canada.

Cattle country remained at a standstill on Wednesday afternoon with both bids and asking prices poorly defined. A few bids of 162.00 were reported by private sources in Kansas. Some asking prices have been suggested around 168.00 plus in the South, and 268.00 in the North. Significant trade volume could be postponed until Friday. The kill totaled 112,000 head, 4,000 more than last week, but 10,000 less than last year.

Boxed beef cutout values were weak on choice and firm on select on light to moderate demand and moderate to heavy offerings. Choice beef down .56 at 249.95, and select was up .27 at 236.37.

Chicago Mercantile Exchange live cattle contracts settled mostly lower in a range of 30 higher to 72 lower. Deferred contracts in the live pit lost more ground than the front months. Although live futures opened significantly lower in the opening rounds, it appeared that technicians once again decided to support charts above 100 day moving averages. December settled .07 higher at 162.47 and February was down .20 at 162.85.

Feeder cattle ended the session 10 to 117 points lower. Reversing from Tuesday’s progress, feeder contracts struggled with triple digit losses for most of the session. Fairly aggressive short covering surfaced, boosting the contracts well above the extreme losses evident in the early rounds. January was down 1.17 at 231.60, and March was .10 lower at 227.25.

Feeder cattle receipts at the Herreid, SD Livestock Market totaled 4356 head on Tuesday. The special sale was the only large offering of yearlings at Herreid in several weeks so a good price comparison was not available. There was moderate to good demand for the many long strings and a few packages of steers and heifers in moderate to moderate plus flesh with heavy flesh at times. 254 steers with an average weight of 882 pounds averaged 228.21 per hundredweight. 520 heifers weighing 880 pounds brought 204.72.

Lean hogs were mostly higher. The market was supported by profit taking and the premium status of the cash index. Supply uncertainties linked to the unpredictable sting of PED also seemed to represent periodic market support. December was up .30 at 87.27, and February was down .05 at5 84.55.

There was slow hog market activity with light demand. Barrows and gilts in the Iowa/Minnesota direct trade closed .27 lower at 84.59 weighted average on a carcass basis, the West was .62 lower at 84.38, and the East had no price comparison at 82.78. The Missouri direct base carcass meat price was steady to 1.00 lower from 76.00 to 78.00. Midwest hogs on a live basis were fully steady from 57.00 to 68.50.

The pork carcass cutout value FOB plant was 1.16 lower at 92.29 with picnics and hams lower and ribs and bellies higher.

Generally speaking, swine carcass weights continue to hold at record heavy levels for this time of year. Federally inspected hog carcass weights were reported steady at 215 pounds for week ending November 22. At the same time, barrow and gilt carcass weights were reported at 212 pounds.

The Wednesday hog kill was estimated at 429,000 head, 1,000 more than last week, but 2,000 less than last year.

Click here to see more...
Subscribe to our Newsletters

Trending Video