Closing Grain and Livestock Futures: September 2, 2014

Sep. corn closed at $3.55 and 3/4, down 3 and 1/4 cents
Sep. soybeans closed at $10.97 and 1/4, up 7 and 3/4 cents
Sep. soybean meal closed at $450.10, up $10.60
Sep. soybean oil closed at 32.01, down 3 points
Sep. wheat closed at $5.43 and 1/2, down 6 and 3/4 cents
Oct. live cattle closed at $152.42, up $1.00
Oct. lean hogs closed at $99.87, up $1.75
Oct. crude oil closed at $92.88, down $3.08
Dec. cotton closed at 65.31, down 126 points
Sep. Class III milk closed at $24.25, up 30 cents
Sep. gold closed at $1,263.70, down $22.10
Dow Jones Industrial Average: 17,067.56, down 30.89 points

South Korea lifts ban on feed additive

The ban on the use of the animal feed additive zilpaterol in beef has been lifted in South Korea.  Last October, the food ministry said it intended to ease its zero-tolerance policy on zilpaterol-based drugs after a risk assessment found it could be permitted at certain levels.  According to Reuters, the lifting of the ban opens the door to imports containing the growth enhancer as well as domestic sales of the product.

Last year South Korea suspended some US beef imports for more than two months after traces of the additive were found in two shipments.  A South Korean food ministry official told Reuters that imports of beef muscle with 1 part per billion of zilpaterol, 5 ppb in beef liver, and 10 ppb in beef kidney had been approved in late August.

The United States, Australia, and New Zealand are all major exporters of beef to South Korea.

Direct trade hogs and pork values close higher

Cattle country was quiet on Tuesday afternoon following the distribution of the new showlists. The offering appears to be smaller than last week with only Texas producers offering more ready cattle. A few showlists have been priced around 158.00 in the South and 248.00 to 250.00 in the North. Some packers appear to be very short bought, In fact DTN reports they have heard talk about cattle in Western Nebraska already trading as high as 157.00 to 158.00, however such talk remains unconfirmed. Tuesday’s cattle slaughter at 119,000 head is 3,000 more than last week but 7,000 less than last year.

Boxed beef cutout values were steady to weak on light to moderate demand and offerings. Choice beef was down .19 at 246.11, and select was .56 lower at 233.83.

Live cattle contracts on the Chicago Mercantile Exchange closed 100 to 157 points higher. Traders continued to refocus on tight supplies now that traders are past the phase of worrying about holiday weekend beef clearance. It is still too early to give the holiday weekend a grade as far as beef consumption is concerned, but from all early indications it was not expected to be very disappointing. October settled 1.00 higher at 152.42, and December was up 1.57 at 155.52.

Feeder cattle settled 160 to 265 points higher, The October through March feeder cattle futures led the market higher. The focus on tight supplies and potentially steady to strong demand growth through the next several months helped to draw additional buyers into all feeder cattle markets. September was up 1.60 at 220.25, and October was up 2.10 at 218.82. [Read more...]

Midday cash livestock markets for Tuesday

Cattle country is quiet on Tuesday with bids and asking prices not fully established as both producers and packers are busy counting heads. Last week cattle buyers waited until late in the day on Friday to fill showlists and some were forced to pay higher money. Live sales in the South ranged from 155.00 to 156.00, 3.00 to 4.00 higher. While Northern dressed business was marked at mostly 245.00 generally 3.00 higher than the previous week, basis Nebraska’s weighted average.

Boxed beef cutout values are higher with the choice up .41 at 246.71, and select was up .81 at 235.20.

Feeder cattle receipts at the Callaway Livestock Center, Kingdom City, Missouri totaled 2738 head. Compared to last week, the annual Labor Day yearling sale had steers and heifers under 500 pounds not well tested, over 500 pounds were steady to firm. The demand was good on a moderate to heavy supply. The offering consisted of mostly 550 to 950 pound feeders with 29 full pot loads. Feeder steers medium and large 1 averaging 840 pounds brought 221.44 per hundredweight. 563 pound heifers traded at 240.00.

Barrows and Gilts in the Iowa/Minnesota, Western and Eastern direct trade are not reported due to confidentiality. Nationally the market is .80 lower with a weighted average of 90.23 on a carcass basis. The Missouri direct base carcass meat price is 2.00 lower from 85.00 to 86.00. Midwest barrows and gilts are steady to 2.00 lower from 59.00 to 70.00 live basis.

The pork carcass cutout value FOB plant is .18 lower at 101.54.

Last week’s hog slaughter totaled no more than 1,979,000 head, 10.4% smaller than last year. With numbers still lagging so far behind last year’s pace, ideas that death loss connected to PED will be difficult to detect through the last third of 2014 may be entirely premature and unjustified.

A light cattle trade at higher prices on Friday

USDA Mandatory reported cattle trading was light in Kansas on moderate demand, compared to the previous week, live sales were 2.00 to 3.00 higher at 155.00. Trading was light in Nebraska on moderate to good demand. Compared to a week ago, a few live sales traded steady to firm at 155.00, and dressed sales 3.00 higher at 245.00. Trading was light in Iowa on moderate demand, dressed sales were 1.00 higher at 243.00. The weekly cattle slaughter was estimated at 584,000 head, 6,000 less than last week, and 49,000 head smaller than 2013.

Boxed beef cutout values were weak on light to moderate demand and moderate to heavy offerings. Choice boxed beef was .59 lower at 246.30 and select was .88 lower at 234.39.

Chicago Mercantile Exchange live cattle contracts settled 50 to 132 points higher. The fact that strong late week support quickly flooded back into the lean hog futures market changed the overall tone of the cattle market. Follow through buyer support quickly redeveloped, seemingly out of thin air, with moderate to strong gains holding. Word of cattle trading in the North at higher prices was also supportive late in the session. August went off the board at 155.90 up 1.25 and October was 1.32 higher at 151.42.

Feeder cattle ended the session 150 to 245 higher. Feeders shook off the early pressure as traders looked for additional support coming from both the lean hog and live cattle futures market. Trade mentality seemed to be focused on closing the week higher given the light trade volume and lack of additional fundamental pressure seen in the market. September settled 1.50 higher at 218.65, and October was up 1.95 at 216.72.

[Read more...]

Closing Grain and Livestock Futures: August 29, 2014

Sep. corn closed at $3.59, down 2 and 3/4 cents
Sep. soybeans closed at $10.89 and 1/2, up 15 and 3/4 cents
Sep. soybean meal closed at $439.50, up $6.30
Sep. soybean oil closed at 32.04, down 60 points
Sep. wheat closed at $5.50 and 1/4, down 6 and 1/4 cents
Aug. live cattle closed at $155.90, up $1.25
Oct. lean hogs closed at $98.12, up $2.65
Oct. crude oil closed at $95.96, up $1.41
Dec. cotton closed at 66.57, down 1 point
Sep. Class III milk closed at $23.95, unchanged
Sep. gold closed at $1,285.80, down $2.90
Dow Jones Industrial Average: 17,098.38, up 18.81 points

Friday midday cash livestock markets

Packer inquiry into the cattle is light to moderate. Look for buyers to turn up the heat over the next several hours, at least enough to get short term slaughter needs covered and grease the wheels for a Labor Day exit. A few late deals were scored in Nebraska on Thursday as high as 155.00 live and 243.00 dressed to regional buyers. Asking prices are around 155.00 to 156.00 live and 245.00 to 248.00 dressed.

Boxed beef values are lower in the morning report, with choice down .90 at 245.99, and select 234.78 down .49.

Feeder cattle receipts at Missouri auctions this week totaled 14,923 head. Compared to the previous week, feeder steers and heifers trended steady to 5.00 lower, although some southern markets did see instances of fully steady to firm markets on light weight feeders suitable for grazing wheat pastures. The supply of feeders offered at auctions was light as the August heat kept many producers at home. Feeder steers medium and large 1 averaging 624 pounds traded at 245.27 per hundredweight. 619 pound heifers averaged 227.43.

Barrow and gilt prices in the three major direct trade areas are not reported due to confidentiality. Nationally the market is .10 higher with a weighted average of 90.56 on a carcass basis. Missouri direct base carcass meat price is steady at 88.00. Most Midwest hog markets are closed for the holiday with only Peoria reporting 1.00 lower with a top of 62.00 live.

The pork carcass value is 1.00 higher at 101.62 FOB plant. The belly primal is over $15.00 higher.

Barring a huge surprise in country numbers, weekly hog kills will steadily climb from September through November. By Thanksgiving, pork demand will be challenged to handle an additional 300,000-plus heavy hogs on a weekly basis.

An evening to “Dine and Discuss” agriculture

Attendees of the Dine and Discuss event learn how UAVs are utilized in today's farming operations.There is a growing disconnect between consumers and their food.  With the hope of starting a dialogue about agriculture, Jasper County farmers Kendall and Tammy Culp opened their home and farm to residents and local officials for the first “Dine and Discuss” event.  “Because I think its important that they understand modern agriculture and what takes place on the farm,” he says.  “You know those local decision makers are in a position to really help agriculture or could do some harm to agriculture.  Especially if they’re not knowledgeable about what we do and the modern practices that we have.”

AUDIO: Kendall Culp, Jasper County (3:30mp3)

Jasper County sheriff Terry Risner was in attendance.  He tells Brownfield he’s two generations removed from the farm and he was surprised by how much has changed over the years.  “Today we’re using computers to direct combines and tractors through the fields and we’re also using the mapping and GPS,” he says.  “That’s a huge technological advancement from in the early 1930’s to now.  That’s pretty mind-blowing, really.”

AUDIO: Terry Risner, Jasper County Sheriff (2:30mp3)

Andy Tauer, director of livestock for Indiana Corn and Indiana Soybean says the Dine and Discuss event was an opportunity to give local stakeholders a behind the scenes look at a modern-day grain and livestock operation.  “We feel that there are a lot of misconceptions about agriculture and things that folks really don’t understand what goes on, on the farm,” he says.  “So we wanted to invite folks out and have an evening on the farm and enjoy some fresh food that’s raised here and discuss agriculture.”

AUDIO: Andy Tauer, Indiana Corn and Indiana Soybean (2:30mp3)

Roughly 150 local officials and guests attended the Dine and Discuss event Thursday evening.

Cash cattle trade was at a standstill

The cash cattle trade remained pretty much dead in the water on Thursday afternoon. Buying interest could surface late in the day if packers are serious about getting procurement complete before Friday, There were a few bids on the table from 151.00 to 152.00 live, and 240.00 to 241.00 dressed. Asking prices are around 155.00 plus live and 245.00 plus dressed. Bullish feedlot managers have been obviously cheered by the higher cattle futures prices. The kill totaled 114,000 head, 1,000 below last week and 11,000 down from last year.

Boxed beef cutout values were weak on choice and sharply lower on select on light to moderate demand and offerings. Choice beef was down .52 at 246.89 and select was 2.33 lower at 235.27.

Chicago Mercantile Exchange live cattle contracts settled 90 to 227 points higher. The live issues gained momentum through the morning trade with October futures leading the surge higher. This turn around in the market is likely to draw more attention to cash cattle prices at the end of the week. There could also be some additional interest by noncommercial traders stepping into the deferred contract months through Friday. August settled 1.45 higher at 154.65, and October was up 2.27 at 150.10.

Feeder cattle ended the session 37 to 270 points higher. The feeder trade moved quickly from the lead market to show more comfort in tagging along as the live futures market seemed to be doing the heavy lifting through the session. The focus on October live cattle reaching above 150.00 per hundredweight was the main incentive to get buyers to jump back into the game. August settled .37 higher at 218.52, and September was up 2.67 at 217.15. [Read more...]

Closing Grain and Livestock Futures: August 28, 2014

Sep. corn closed at $3.61 and 3/4, up 5 and 3/4 cents
Sep. soybeans closed at $10.73 and 3/4, down 12 cents
Sep. soybean meal closed at $433.20, up $16.70
Sep. soybean oil closed at 32.64, down 3 points
Sep. wheat closed at $5.56 and 1/2, up 9 and 1/4 cents
Aug. live cattle closed at $154.65, up $1.45
Oct. lean hogs closed at $95.47, down 45 cents
Oct. crude oil closed at $94.55, up 67 cents
Dec. cotton closed at 66.58, down 88 points
Sep. Class III milk closed at $23.95, down 3 cents
Sep. gold closed at $1,288.70, up $6.80
Dow Jones Industrial Average: 17,079.57, down 42.44 points