Kentucky Farm Bureau

CBOT futures closed steady to higher following the midday USDA WASDE report which was generally friendly for corn and negative for soybeans. US and World ending corn stocks were forecast below trade expectations, while soybean stocks came in much higher than expected as USDA incorporated the current Chinese import tariffs into its projections.  Cattle and hog futures rebounded nicely today following yesterday’s rout.

Commodity and equity markets took a big hit today, resulting in a very RED quote screen. The negative, risk-off trade started early after it was announced the US plans 10% tariffs on an additional $200 billion of Chinese goods entering the US.  CBOT futures closed sharply lower and at/near the day’s lows.  Cattle and Lean Hog futures also suffered significant price losses amid the day’s general sell-off.

CBOT futures closed steady to much lower with Chicago wheat leading the way down. Wheat was pressured by large supplies and strong export competition. Corn dropped on above-average crop ratings and forecasts for rain next week to keep the crop looking strong.  Live Cattle weakened in the 2018 contracts and edged higher for 2019 contracts. Feeder Cattle posted small gains as the CBOT dropped.

CBOT futures closed narrowly mixed.  Corn and soybeans made the day’s highs soon after the 830 am opening and then worked lower.  The U.S. announced several import tariffs on the EU/Canada/Mexico this morning.  Cattle futures opened higher on follow-through to Wednesday strong gains, but sold off on the import tariff news soon after the open, only to later recover some of the losses.

CBOT futures closed sharply lower after trading higher overnight. Futures were pressured early morning and then hit a couple more times as bearish news hit from outside financial markets.  Cattle futures closed mixed with the Live Cattle lower – June LC leading the way down.  Pressure stemmed from last week’s weak cash market, ending near $110/cwt.

Corn and soybean futures closed lower with the soy complex leading the way down. Corn and soybeans tried to move higher when markets reopened at 830 am CT, but heavy selling hit the market right away.  Cattle futures closed lower for the third straight day as cash feedlot prices soften, as did boxed beef prices today.

CBOT futures recovered from early morning losses to post mostly higher closes. The positive closes resulted from sharp gains in the last hour of trading. With follow-through selling from Monday’s sharp losses, cattle futures closed sharply lower. Two-day losses total $4-$5/cwt. US Treasury yields rose sharply today, which led to a marked rise in the US Dollar Index. 

CBOT futures closed mixed after spending the overnight hours lower. However, as the market opened at 830 am CT, CBOT futures rallied sharply into the 11 am hour.  Cattle futures gapped down on the open and closed sharply lower with the nearby June LC contract settling down the daily $3.00/cwt limit. The market was pressured by Friday’s disappointing cash trade.