Friday Market Watch - Cheaper Corn Drives Livestock Higher; Corn, Soybean Prices Plummet On Hopes For Rain

LIVESTOCK:

For the most part, Friday's market treated the livestock complex favorably as the contracts closed mostly higher. Come Monday, we will see how traders view Friday's Cattle on Feed report, which showed greater placements than expected. Hog prices closed lower on the Daily Direct Afternoon Hog Report, down $1.75 with a weighted average price of $93.04 on 2,096 head. 

From Friday to Friday, livestock futures scored the following changes: June live cattle down $0.85, August live cattle down $0.95; August feeder cattle down $0.97, September feeder cattle down $0.47; July lean hogs down $1.57, August lean hogs down $1.00; July corn down $0.09, September corn down $0.09.

Friday's Cold Storage report shared that total red meat supplies in freezers were down 7% from last month and down 11% from a year ago. Total pounds of beef in freezers were down 6% from last month and down 20% from a year ago. Frozen pork supplies were down 7% from a month ago and down 4% from last year. Stocks of pork bellies were up 2% from last month and up 46% from last year.

Friday's slaughter is estimated at 120,000 head, 2,000 head more than a week ago and 2,000 head less than a year ago. Saturday's slaughter is projected to be around 26,000 head. This week's slaughter is estimated at 649,000 head, 15,000 head more than a week ago and 16,000 head less than a year ago.

Boxed beef prices closed lower: choice down $0.46 ($334.01) and select down $3.84 ($299.96) with a movement of 78 loads (34.95 loads of choice, 26.53 loads of select, zero loads of trim and 17.00 loads of ground beef).

More: Friday Closing Livestock Market Update - Cheaper Corn Drives Complex Higher

GRAINS:

July corn closed down 29 3/4 cents and December corn was down 32 3/4 cents. July soybeans closed down 6 cents and November soybeans were down 29 1/2 cents. September KC wheat closed down 10 3/4 cents, September Chicago wheat was down 6 1/4 cents and September Minneapolis wheat was down 10 3/4 cents.

For the week:

July corn closed down 9 1/2 cents and December corn was down 9 1/2 cents. July soybeans closed up 28 cents and November soybeans were down 32 1/4 cents. September KC wheat closed up 17 cents, September Chicago wheat was up 45 1/4 cents and September Minneapolis wheat was up 17 3/4 cents.

DAIRY: 

Block cheese price declined 0.50 cent closing at $1.4050 with three loads traded. There was an unfilled bid and uncovered offer remaining at the close. Barrel cheese price declined 0.75 cent closing at $1.50 with no loads traded. There was an unfilled bid and uncovered offer remaining at the close. The bids remaining after spot trading yesterday gave the impression buyers might be looking more aggressively for loads today, but such was not the case. Dry whey price remained unchanged at 26.50 cents with no loads traded. Buyers were ready to purchase if price would have declined as there were six unfilled bids remaining at the close. Class III futures are mixed with contracts ranging from 9 cents lower to 6 cents higher. Butter price increased 4 cents closing at $2.42 with one load traded. Grade A nonfat dry milk price declined a penny to $1.1325 with one load traded. The recent weakness could indicate price may fall back to the low of mid-April. Class IV futures are mixed with July up 13 cents and March down 9 cents. Butter futures are 1.00–2.47 cents higher. Dry whey futures are unchanged to 0.30 cent higher. USDA will release the May Cold Storage report this afternoon. Butter stocks are expected to be higher than a year ago. Cheese stocks could go either way. So far, they have been holding near the levels of a year ago.

More: Friday Closing Dairy Market Update - Cold Storage Data Neutral for Butter, Friendly for Cheese

FORAGE: This Week's Hay Markets (Forage Fodder Blog)

OUTSIDE MARKETS:

The U.S. Dollar Index is up 0.50 at 102.89. T August crude oil is down $0.35 per barrel at $69.16. The Dow Jones Industrial Average is down 219 points at 33727 with the NASDAQ is down 138 points at 13,493. August gold is up $6.60 at $1,930.30, July silver is down $0.05 at $22.42 and July copper is down $0.0810. August ultra-low sulfur diesel is down $0.0282, August RBOB gasoline is down $0.0274 and August natural gas is up $0.128.