The grain markets were mixed overnight after yesterday’s Crop Progress report and ahead of today’s 11am Acreage and Stocks reports. Corn crop conditions fell by 3% to 68%, compared to 75% good to excellent last year and was in the range of expectations. The eastern corn belt saw the steepest drop. Ohio corn dropped 19% good to excellent. The average estimate for corn acreage and stocks is 89.173 million acres, compared to the 89.199 March USDA number, and 4.512 billion bushels for June 1 stocks, compared to 3.852 last year.
Historically small U.S. cattle inventory continues to support high beef prices in 2015, but at least in the short term, increasing imports of processing beef (especially from Australia) and heavy carcass weights have helped moderate some of the price pressures.
The grain markets traded mixed Monday ahead of the USDA Stocks and Acreage reports tomorrow. After the trade had seen significant weather premiums in the last few weeks, if seemed as profit taking and long liquidation was the theme today. The average trade estimate for June 1, 2015 stocks is 4.557 billion bushels with a range of 4.35-4.7 billion bushels. The June 1, 2014 stocks number was 3.852 billion bushels. The weekly export inspections came in at 1.04 million tonnes, suggesting firmness in demand.
Choice boxed beef prices fell a whopping $1.93 on Monday, hitting $252.60. The decrease brought the 27-day average price to $252.74. Select boxed beef saw a smaller drop from $249.68 on Friday to $249.34 on Monday. The 34-cent fall brought the 27-day average price to $244.90.
All cuts of choice primal meat saw decrease. Choice primal flank fell the hardest at $2.75 to hit $147.70. Chioce primal loin was close behind, falling $3.16 to $337.05. Choice prmail round saw the smallest fall from $230.93 on Friday to $230.05 on Monday.
By David Alire Garcia and Adriana Barrera, Reuters
Mexico expects a finalized 12-nation Pacific trade deal to double the country's agricultural exports to Japan's mostly closed market, and the deal will likely be signed in the "next few weeks," a senior trade official said on Friday.
Lean hog prices gained 80 cents and went to $75.45, which is their highest of the week. The 27-day average is $80.23. Cattle prices ended the week Friday with further decreases. Live cattle prices dropped 10 cents to $148.40. The 27-day average price is $152.38. Feeder cattle prices went down $1.80 to $217.25. The 27-day average price comes to $222.64.
Compared to last week, yearling feeder cattle sold mostly steady with spots 2.00 higher to 2.00 lower. Steer and heifer calves traded steady to 5.00 lower throughout auctions in the Midwest and the Southeast. Demand still remains very good for calves and yearlings as there were several special sales this week as on Wednesday in Bassett, NE held a special fall-born calf sale selling 4500 head of top quality calves with some of the bell ringers; near 400 head of steer calves weighing 550-600 lbs averaging 578 lbs selling with a weighted average price of 306.68 and near 800 head of their bigger brothers weighing 650-700 lbs averaging 662 lbs with a weighted average price of 274.07.