The wheat complex was mixed with Chicago up after Egypt bought 55,000 tons of U.S. soft red winter. Past that – there was no real fresh news, domestic development conditions generally look good, and stocks were larger than expected in that last round of USDA reports. Argentina has raised its production and export estimates, projecting the crop at 9.2 million tons, while 2013/14 exports are seen at 1.5 million tons. DTN reports Iran bought 50,000 tons of wheat from Kazakhstan. According to Ukraine’s Ag Ministry, grain exports since the start of the marketing year July 1 are 19.85 million tons, up 34% from the same period a year ago, with Russia’s Ag Ministry adding grain sales are 26% ahead of the year ago pace at 16.384 million tons.
Cattle country was quiet on Monday following the distribution of the new showlists. The new offering appears to be generally smaller than last week, with only Kansas reporting about the same ready numbers. A few showlists have been reportedly priced around 141.00 to 142.00 in the South and 225.00 plus in the North. The kill totaled 118,000 head, 8,000 more than a week ago, but 7,000 smaller than last year.
Boxed beef cutout values were higher to sharply higher on moderate demand and light offerings. Choice boxed beef was up 1.96 at 216.94, and select was up 3.18 at 214.76.
Live cattle contracts on the Chicago Mercantile Exchange settled mostly lower. Traders concentrated on both long and short term direction issues through the complex. The nearby contracts did regain light support based on aggressive moves in the boxed beef values. But most of the contracts remained lower due to higher feed costs and pressure in the feeder cattle futures. February settled .10 lower at 136.60, and April was up .10 at 137.07.
Feeder cattle settled 45 to 117 points lower. Even though corn prices were not able to show additional support early in the week, just the fact that prices held near where they left off on Friday created additional pressure in the feeder cattle complex. January settled .82 points lower at 167.82 and March was down 1.17 at 166.47.
Feeder cattle receipts at the Joplin, Missouri Regional Stockyards totaled 9000 head. No recent Monday sale for a price comparison. Compared to last week’s value added sale steers and heifers weighing less than 700 pounds sold steady, over 700 pounds were steady to 2.00 lower on comparable sales. The demand was good and supply was heavy. Feeder steers medium and large 1 weighing 600 to 700 pounds traded from 172.00 to 186.00 per hundredweight. 6 to 7 weight heifers brought 161.50 to 164.00.
Lean hogs settled unchanged to 62 points lower. Lean futures were lower on the lack of support in fundamentals from the morning report. DTN analysts’ report traders are looking for increased interest to develop through the rest of the week, but so far there wasn’t much support expected to step into the market over the near future. June futures held prices over $100.00 per hundredweight. But the lack of nearby contracts to hold onto recent gains is becoming a problem for the entire complex. February settled .45 lower at 85.37, and April was down .62 at 90.37.
There was slow hog market activity with light demand on Monday afternoon. The Iowa/Minnesota direct trade barrows and gilts closed .90 higher at 78.13 on a carcass basis, the West was up .65 at 77.69, and the East was .58 lower at 76.09. Missouri direct base carcass meat price was steady from 73.00 to 75.00. Terminal hogs were steady with an instance of .50 higher from 51.00 to 60.00.
The pork value was .88 lower at 83.17 FOB plant on a negotiated basis.
The ongoing combination of generally flat hog sales and decent pork processing margins suggests that market ready numbers of barrows and gilts remain entirely adequate, largely unchecked by either seasonal tightening or PEDv death loss.
The Monday hog slaughter was estimated at 430,000 head, 134,000 more than last week, and 4,000 greater than last year.
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