Market Update - October 28, 2014

Posted on Oct 28, 2014

CBOT futures are mostly higher but well off the day’s highs. Soybeans peaked around 4:30 am CT, but December Corn hit its high about 9:40 am. The market has been driven by the cash soybean meal market where buyers can’t seem to get enough supplies. Soybean processors have exceptionally large crush margins. Adding to this week’s strength has been aggressive short-covering by the funds in soybean futures. The slow harvest pace is also supportive; corn is 46% complete versus 65% for the 5-year average and soybeans are 70% harvested or 6% behind the 5-year average. Market advisory firms have been executing incremental sales of 5-10% as futures have rallied.

Cattle futures are mostly lower despite a strong boxed beef market and optimism for cash cattle to trade higher than last week’s $169 average. Choice Beef is up 2.40 to 251.60 and Select is up 3.21 to 239.20/cwt.

Traders are ignoring today’s weak pork and hog markets and boosting Lean Hog futures. At midday, FOB Plant Pork is down 2.61 to 97.50 on sharp losses in values of loins and hams. Support may come from the fact that LH futures are $7.00/cwt below prices seen 3 weeks ago.

Effective October 27, 2014 electronic trading hours for CME Lean Hogs, Live Cattle, and Feeder Cattle futures and options will be as follows: - Monday: 9:05 a.m. to 4:00 p.m. Central Time - Tuesday to Thursday: 8:00 a.m. to 4:00 p.m. Central Time - Friday: 8:00 a.m. to 1:55 p.m. Central Time Open-outcry trading hours for CME Livestock futures and options products will not be impacted by this adjustment to CME Globex trading hours.

Corn Dec +2 365 (362-72); May unch 386; Dec15 unch 408 Bean Nov +4 1010 (1000-34); May +3 1029; Nov -6 992 Meal Dec +1 378 (374-400); May unch 339 Oil +56 3279 Wheat Dec +6 529; Jly +6 558 (552-61) KC +6 601; MGE +5 576 Oats -5 355 Rice -26 1197

LC Oct -5 16950; Dec +5 16787; Apr -50 16577 FC Oct -10 23822; Nov -95 23385; Mar -52 22675 LH Dec +120 9025; Feb +105 8927; Apr +107 8937 Milk Oct unch 2390; Nov +10 2132

US$ -.3%

Dow +.3% SP +.5% NAS +1% Tran +1.2% VIX -2.7% 15.61

WTI -.1% Brent -.1% Gas +.6% NG +1% HO +.2% Eth +2.3% Gold unch Slvr +.3%

5-yr +.018 1.502% 10yr +.027 2.284% 30yr +.027 3.061%

Blue Grass Stockyards Cattle Auction Report for 10/27/2014 Receipts: 2073 Last Monday: 2268 Year Ago: 2504 **Correction to supply Compared to last week steer calves sold steady to weak with moderate to good demand. Heifer calves sold steady to 2.00 higher with good demand. Quality was plain through good. Yearling steers and heifers lightly tested. Slaughter cows sold 1.00 to 3.00 lower with moderate demand. Slaughter bulls sold 2.00 to 4.00 lower with light to moderate demand. Weaned calvesin very good demand but in short supply. Total supply included 09% slaughter cows, 02% slaughter bulls, 1% replacements and 88% feeders. Feeder supply 28% steers, 29% bulls, 43% heifers with 31% of feeders weighing over 600 lbs.

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Tagged Post Topics Include: Economics, Market updates