Market News Recap
Soybeans were higher on fund and commercial buying. Demand remains strong with China buying another 233,000 tons of 2014/15 U.S. beans and it was another good week for export inspections. Past that – the trade’s watching South America with drier conditions for some areas this week. Soybean meal and oil followed beans higher. China has published draft rules that enable foreign investors to get involved in Chinese markets. Also, Beijing has announced a state grain sale next week.
Corn was higher on fund and commercial buying. Demand also remains strong for corn, from the feed, fuel, and export segments of the market. That demand should be reflected in next Monday’s USDA quarterly stocks report. USDA will also be reporting the final 2014 production totals and issuing a new set of supply and demand projections. Ethanol futures were lower.
The wheat complex was higher on fund and speculative buying. Wheat’s watching weather, specifically the very cold conditions in U.S. winter growing areas, with parts of the region having little or no snow cover. Still, the dollar’s been very strong recently and the overall fundamentals remain bearish. According to wire reports, China bought a total of 120,000 tons of hard wheat recently, expected to be at least partially from the U.S. and Australia.
Cattle country was typically quiet on Monday afternoon following the distribution of the new showlists. While ready numbers vary from state to state the overall offering appears to be generally smaller than last week especially in Kansas and Colorado. A few asking prices are around 170.00 in the South and 270.00 plus in the North. The kill totaled 106,000 head, 10,000 below last week, and 4,000 less than 2014.
Boxed beef cutout values were steady to firm on moderate to fairly good demand and moderate offerings. Choice beef was up .33 at 249.35, and select was .03 higher at 240.43.
Chicago Mercantile Exchange live cattle futures settled 55 to 117 points higher. Moderate gains held through the session as firm support was still evident in the feeder cattle futures. Even though boxed beef prices have slipped, firmness remained as traders continue to focus on the potential for additional price support through the coming weeks and months. February settled .55 higher at 166.25, and April was up .87 at 165.45.
Feeder cattle ended the session 87 to 192 points higher. Gains held through the complex, but the increased volume stepping back into the market has created a calming effect and broken away from the aggressive limit or near limit gains seen at the end of last week. January settled 1.72 higher at 225.67, and March was up 1.92 at 223.37.
Feeder cattle receipts at the Joplin, Missouri Regional Stockyards today totaled 7,000 head. There has not been a recent test of the market due to the holidays. The demand is good on a moderate supply. Feeder steers, medium and large 1 weighing 500 to 600 pounds traded from 258.00 to 281.00 per hundredweight. 5 to 6 weight heifers brought 227.00 to 255.00.
Lean hogs settled 30 points higher to 135 lower. Early support in the lean pit quickly eroded through the morning as traders concentrated on the lack of support during early January, The concern over growing supplies and lackluster post-holiday demand added significant pressure to the front month futures. February settled 1.35 lower at 79.95 and April was down .70 at 82.80.
Barrows and gilts in the Iowa/Minnesota direct trade closed 1.08 lower at 74.67 weighted average on a carcass basis, the West was down .91 at 74.61, and the East was 1.05 lower at 71.69. Missouri direct base carcass meat price was steady from 59.00 to 71.00. Midwest hogs on a live basis were steady with an instance of 1.00 lower from 48.00 to 60.00.
Since the first of December, barrow and gilt slaughter has been 1.2% lower than implied by the heavy weight inventory in USDA’s December Hogs and Pigs report. In short, we’re still waiting for cash realities to verify the bearishness of the government’s survey.
The pork carcass cutout value was .02 lower at 83.30 FOB plant.
Monday’s hog kill was estimated at 437,000 head, the same as last week, but 126,000 more than last year.
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