Corn was lower on commercial and fund selling, along with spillover from beams. Ethanol demand remains good, but the trade’s very concerned about export demand for corn and DDG’s, especially from China. In any event, the trade expects a record crop number and increased ending stocks next week. Ethanol was mixed with January through June 2014 up and all other month’s down. Weekly U.S. corn sales are expected to be between 250,000 and 900,000 tons.
The wheat complex was lower on fund and technical selling, in addition to the higher dollar. There was just not much fresh news coming back from that day off and everyone around the grain and oilseed markets are waiting for the January 10 USDA numbers. U.S. winter wheat areas are cold, but large portions do have snow cover. Taiwan is tendering for 54,800 tons of U.S. milling wheat. Weekly U.S. wheat sales are projected at 200,000 to 600,000 tons.
USDA Mandatory reports cattle trading was active in the Southern Plains Thursday on very good demand. Compared to last week, live sales in the Texas Panhandle were 3.00 higher, with sales in Kansas 4.00 to 5.00 higher at 137.00. Trading was light to moderate in Nebraska on very good demand. Compared to last week, early live sales were 2.00 higher at 138.00, with dressed sales 4.00 to 5.00 higher at 217.00 to 218.00. Trading was light in Iowa with early dressed sales at 216.00 to 217.00. The kill was estimated at 121,000 head, 11,000 more than last week, but 7,000 less than last year.
Boxed beef cutout values were steady to weak on light demand and ;light to moderate offerings. Choice beef was down .10 at 200.55 and select was .36 lower at 196.05.
DTN is reporting they understand the JBS plant in Grand Island, Nebraska is experiencing difficulties and has cancelled some slaughter cattle for today.
Live cattle contracts on the Chicago Mercantile Exchange settled mostly higher. The live pit was on a roll as the New Year began, supported by further evidence of short fed supplies and hungry packers. February and April cracked through ceilings of resistance. Boxed beef values at midday were firm. February settled at 136.62 up 1.00 and April was up .5 at 135.80.
Feeder cattle finished the session higher except for the March contract on support from the live pit. DTN says market history teaches that feedlot profits and optimism quickly translates in terms of greater spending for replacement steers and heifers. January was up .30 at 1.67, and March was down .40 also at 167.00.
There was a special feeder cattle auction at the Joplin, Missouri Regional Stockyards Thursday. Receipts are estimated at 5,000 head. Compared to over two weeks ago, steers and heifers opened sharply higher. The demand was good and the supply was moderate. Feeder steers weighing 550 to 600 pounds traded from 187.00 to 194.00. 5 to 6 weight heifers brought 160.00 to 173.50.
Lean hogs settled 20 to 165 points higher. The lean contracts were on fire. It almost seemed like a delayed reaction to the friendly December hogs and pigs report. Higher direct trade markets in the morning report also helped to support futures, as well as spillover action from the cattle complex. February settled 1.65 higher at 87.07 and April was up 1.12 at 91.80.
Barrows and gilts in the Iowa/Minnesota direct trade closed 1.62 higher with a weighted average of 78.75 on a carcass basis, the West was up 1.53 at 78.58 and the East was 1.02 higher at 76.97. Missouri direct base carcass meat price was steady from 71.00 to 73.00. The terminals were steady to 1.00 higher from 49.00 to 60.00 live.
The pork value was .37 lower at 84.00 FOB plant.
For the week ending Dec. 28, Iowa barrows and gilts averaged 282.3 pounds, 1.7 pounds heavier than the previous week and 6.5 pounds greater than late 2012.
Thursday’s hog slaughter was estimated at 432,000 head. 3,000 less than last week and 1,000 more than last year.
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