Soybean Futures Prices Fall on Tough Economics

Dec 02, 2014


Tuesday's Closing Grain & Livestock Futures Prices

Dec. corn closed at $3.67 and 3/4, down 7 and 3/4 cents
Jan. soybeans closed at $9.95 and 3/4, down 21 and 1/4 cents
Dec. soybean meal closed at $383.10, down $1.30
Dec. soybean oil closed at 31.17, down 105 points
Dec. wheat closed at $6.05 and 1/4, down 1 and 1/2 cents
Dec. live cattle closed at $168.62, down $1.32
Dec. lean hogs closed at $89.50, down 62 cents
Jan. crude oil closed at $66.88, down $2.12
Dec. cotton closed at 60.75, up 57 points
Dec. Class III milk closed at $17.92, up 17 cents
Dec. gold closed at $1,199.20, down $18.80
Dow Jones Industrial Average: 17,879.55, up 102.75 points

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Ag Market News And ReCap:  

Soybeans were lower on fund and commercial selling, along with the higher dollar and lower crude oil. There’s not much fresh news as the trade waits for the final production totals and watches planting in South America. Brazil’s expected to make better planting progress thanks to improved rainfall this week. Australia’s Bureau of Meteorology adds climate models continue to suggest an El Nino pattern. Soybean meal and oil followed beans lower.

Corn was lower on fund and technical selling, in addition to the outside market influence. Corn’s also looking at a lack of fresh news and watching South American planting, while waiting on the final crop numbers from USDA in January. Until then, the next set of supply and demand numbers is out on Wednesday, December 10th. Ethanol futures were lower.

The wheat complex was lower on fund and technical selling. Contracts gave back at least part of Monday’s gains with higher trade in the dollar adding to the pressure. The complex is watching winter wheat conditions as the crop heads into dormancy, in addition to weather in Australia and the Black Sea region. Australia’s Bureau of Agriculture and Resource Economics has lowered its domestic wheat production outlook to 23.22 million tons following a prolonged dry spell in some key growing areas. Japan is tendering for 146,700 tons of milling wheat from the U.S. and Canada.

Chicago Mercantile Exchange live cattle futures were lower on long liquidation and demand uncertainties. Contracts did attempt to rally, but were stymied by the midday boxed beef quote and the lack of expected early week packer demand. December was $1.32 lower at $168.62 and February was down $1.80 at $169.05.

Feeder cattle were higher, following through on Monday’s strength. The trade’s keeping an eye on the weather and the potential for another cold snap in the major feeding areas. January was $1.47 higher at $235.55 and March was up $.27 at $233.47.

Direct cattle markets were at a standstill, as is usual for Tuesday. Most packers appear to be short bought and in need of supplies after last week’s light kill, but the showlist does look larger, especially in the South, which may be limiting buying interest. We’ll likely have a better idea Wednesday. Asking prices are holding around $175 Live in the South and $270+ Dressed in the North.

At the Oklahoma National Stockyards in Oklahoma City, Oklahoma, estimate receipts of 5,173 head were down on the week, but up on the year. Feeder steers were unevenly steady and feeder heifers were steady to $2 higher. Cattle quality was called plain to attractive and 53% of the supply weighed more than 600 pounds. 600 to 690 pound feeder steers ranged from $248.50 to $288 and 706 to 797 pound feeder steers sold at $232.50 to $252.50. 400 to 490 pound feeder heifers ranged from $283 to $319 and 500 to 577 pound feeder heifers brought $255 to $274.50.

Boxed beef was lower on light demand and light to moderate offerings. Choice was down $1.12 at $256.36 and Select was $1.68 lower at $243.66. The estimate cattle slaughter of 111,000 head was down 6,000 on the week and 11,000 on the year.

Lean hog futures were mixed following a choppy session. Once again, there was no clear direction with cash and wholesale markets sending conflicting signals. Most contracts remain at a slight premium to the cash index. December was $.62 lower at $89.50 and February was $.07 higher at $89.00.

Cash hog trade was mostly steady to higher, with packer demand at the bulk of the major direct markets improving as the day went on. Market ready numbers continue to look adequate in most areas, with weather not a major factor right now. However, the wholesale market is an issue, up at midday, but down sharply at the close on Tuesday. The average Iowa/Southern Minnesota average weekly hog weight update is out Wednesday morning.

The Eastern Cornbelt was the exception for the major direct markets, down $.64 at $83 to $85.01 for a weighted average of $84.56, while the Western Cornbelt was up $1.52 at $75 to $88 with an average of $86.53 and Iowa/Southern Minnesota was $1.59 higher at $84 to $88 for an average of $86.61. The National Direct market was up $.79 at $75 to $88 with an average of $85.92. Midwest cash markets were steady to $1 higher with tops at $58 to $66. The Missouri Direct base carcass meat price was steady with a top at $79 on light to moderate supply and demand. Missouri sows were steady at $55 to $74. Illinois Direct sows were $1 to $3 lower at $60 to $72.

The pork carcass cutout value closed $1.76 lower at $92.16. Loins were up, while all other primals were down. The estimated hog slaughter of 430,000 head was 4,000 lower than a week ago and 8,000 below a year ago.

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