Corn futures climbed 9¢ to 13¢ through July ’23 Monday, in response to the latest monthly World Agricultural Supply and Demand Estimates, which reduced expected production (see below).
Soybean futures closed 60¢ to 76¢ higher through Jly ‘23 and then mostly 32¢ to 40¢ higher.
Feeder Cattle futures closed an average of $1.32 lower (30¢ lower at the back to $2.45 lower toward the front).
Live Cattle edged an average of 19¢ higher, maintaining the previous session’s gains with some optimism for cash trade this week.
Negotiated cash fed cattle trade ranged from mostly inactive on very light demand through Monday afternoon, according to the Agricultural Marketing Service.
Last week, live prices were steady to $1 higher in the Southern Plains at $141/cwt., steady to $3 lower in Nebraska at $142-$143 and steady to $1 higher in the western Corn Belt at $143-$146. Dressed prices were $2-$4 lower in Nebraska at $226 and $2-$3 lower in the western Corn Belt at $225-$230.
The five-area direct fed steer price last week was $142.48 on a live basis, which was 40¢ less than the previous week. The average five-area direct steer price in the beef was $2.10 lower at $226.68.
Choice Boxed beef cutout value was $1.68 higher through Monday afternoon at $258.94/cwt. Select was $1.03 higher at $235.76/cwt.
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Major U.S. financial indices extended gains Monday on what some are terming a relief rally.
The Dow Jones Industrial Average closed 229 points higher. The S&P 500 closed 43 points higher. The NASDAQ was up 154 points.
West Texas Intermediate Crude Oil futures on the CME closed 99¢ to $1.21 higher higher through the front six contracts.
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The latest World Agricultural Supply and Demand Estimates (WASDE) provided price support for corn with the estimated season average farm price (SAFP) received by producers 10¢ higher than the previous month’s estimate at $6.75/bu.
WASDE reduced projected 2022-23 production 415 million bu. less at 13.9 billion bu. based on yields down 2.9 bu./acre at 172.5. Harvested area for grain was forecast at 80.8 million acres, down 1.0 million. Ending stocks were projected 169 million bu. less at 1.2 billion.
U.S. soybean production for 2022-23 was projected 152 million bu. less than the previous month at 4.4 billion bu., on yield forecast at 50.5 bu./acre, which was 1.4 bu. less than the previous estimate. Harvested area was also projected to be 0.6 million acres less.
Even so, the projected SAFP remained unchanged with soybeans at $14.35/bu., soybean meal at $390/short ton and soybean oil at 69.0¢/lb.
The outlook for wheat supply and use was unchanged. The expected SAFP declined 25¢ to $9.00/bu., which would be record high.