Soybeans were feeling pressure Friday from the high dollar and from South American weather. Brazil and Argentina are expecting rain with most of the growing areas expected to see moisture and no excess heat in the first half of January. DTN’s five-day forecast shows limited rainfall and warm temperatures for Mato Grosso, but more rain in Southern Brazil. That’s generally good for crop development and bearish for the market. U.S. soybean export sales are down, but still beating the pace for USDA’s export estimate.
Corn was lower because of follow through selling from Wednesday’s lower futures trade and from the firm dollar. Weekly export sales were about as expected. There was a nice sale of corn to end the week and start the year. Japan bought 210,000 metric tons of it, according to the USDA. The sale is in spite of the dollar trading at its highest level in eight years. By the end of the Friday trading session, the price of corn had recovered to within a penny or two of even money. The corn market is expected to struggle a day or two before stabilizing on Tuesday.
Wheat was lower because of follow-through selling and a low weekly export sales number below the pace needed to meet USDA’s export estimate. DTN cites some concern over upcoming cold temperatures with limited snow cover, which is potentially damaging to the winter wheat crop. Nonetheless, buyers concentrated more on the strong dollar that limits export demand.
The cash cattle trade was quiet on Friday afternoon with business competed for the week. Given this week’s success in the country and the boards strong close feedlot managers will be pricing showlists significantly higher on Monday. Early estimates are that show lists will be priced from 168.00 to 170.00 live. The weekly cattle slaughter is estimated at 452,000 head, 61,000 more than last week, and down 73,000 from last year.
Boxed beef cutout values were lower on choice and higher on select on light to moderate demand and offerings. Choice beef down 1.07 at 247.83, and select was up .75 at 239.32.
Live cattle contracts settled 87 to 250 points higher with traders focusing on the strong cash market support. Nearby contracts moved back above the 40 day moving average, which if prices held the current levels would indicate a strong weekly chart shift. This may be able to draw some long term support into the market during early January. February settled 2.12 higher at 165.67 and April was up 2.17 at 164.57.
Feeder cattle settled 375 to 450 points higher on the sharp rally in the live cattle pit and support in the cash cattle markets at midweek sparked additional widespread support through the feeder cattle market. January settled the 4.50 limit higher at 223.95, and March was up 4.12 at 221.45.
Feeder cattle receipts at Missouri auctions this week totaled only 2596 head. There were not enough sales of feeders to provide any price comparisons. Most local auctions remained dark providing two full weeks for buyers, producers, truckers and barn employees to spend time with their families. Markets saw a sharp decline the last two full business weeks for the year. Markets easily lost 25.00 per hundredweight, with less desirable fleshy type calves 30.00 to 40.00 lower. Feeder steers medium and large 1 averaging 667 pounds brought 240.50 per hundredweight. 724 pound heifers averaged 219.70.
Lean hogs settled 2 to 50 points higher as early mixed prices gave way gains based on spillover support from the cattle complex. February settled .10 higher at 81.30, and April was up .22 at 83.50.
Barrows and gilts in the Iowa/Minnesota direct trade closed .10 lower at 75.77 weighted average on a carcass basis, the West was down .29 at 75.53, and the East 72.74 with no price comparison. Missouri direct base carcass meat price steady at 71.00. Most Midwest hog markets are closed for the holidays. Peoria steady on a live basis from 48.00 to 50.00.
The pork carcass cutout value was 1.08 lower FOB plant at 83.32, with loins down the most.
For the week ending December 27, Iowa barrows and gilts averaged 286.9 pounds, 1.7 pounds heavier than the previous week and 4.6 pounds bigger than 2013.
The weekly hog kill is estimated at 1,998,000 head, 260,000 more than last week and 6,000 more than last year.
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