Market closes and KY's Rainfall Forecast - August 29, 2012
Posted on Aug 29, 2012
Traders found several reasons to rally CBOT futures today and prices closed very near the day’s highs. Funds were big buyers across the CBOT. Wheat futures rallied on increased worry that Russia will eventually block exports due to a short crop. The wheat supply-demand balance is probably tightening as more wheat is used for feed in place of corn and world production estimates come down. Even though traders should have known Monday that Isaac would potentially damage unharvested crops in the Mississippi River Valley and the eastern Corn Belt, they didn’t take action (buy futures) until today; must have been the TV coverage of heavy rain & wind in New Orleans. Technically, December Corn couldn’t have gone much lower without breaking chart support and not enough “bears” were available to sell it. Soybeans have continued to see strong export demand despite the high prices. Soybean futures are testing resistance at the record highs posted Sunday night. New highs tomorrow could cause short-covering and see November run to $18.00. The continuation chart has resistance at $17.77 ¾ from July. Evidence is lacking that the soybean price is high enough to ration the supply.
Live Cattle futures closed higher on short-covering from optimism that cash cattle prices will improve this week. However, boxed beef values dropped -- Choice DN 0.99 at 190.92; Select DN 0.99 at 180.95.
In sympathy with Live Cattle, the Lean Hog futures market managed small gains despite the ongoing weak hog and pork markets. The Pork Cutout dropped 0.67 to $82.59/cwt.
See University of KY article on Isaac’s impact on KY: http://news.ca.uky.edu/article/isaac-could-impact-kentucky
Corn Sep +21 810; Dec +18 813.5 (793-814.5); May +15 805.5; Dec’13 +4 653
Bean Sep +31 1763; Nov +31 1753 (1716-1754); May +19 1567.5; Nov’13 +10 1347.5
Meal +9 543 (533-544) Oil +91 5664
Wheat Sep +31 885.5; Dec +30 906; Jly +12 859.5 KC +29 896; MGE +30.5 940.5
LC Aug +57 11940; Oct +175 12550; Feb +100 13225 FC Aug +10 14040; Oct +32 14480; Jan +32 14905
LH Oct +45 7370; Dec +27 7102; Feb +32 7907
Milk Sep +26 1932; Oct +29 2028
Oats +13 387
Rice -16 1522
US$ +.2%
Dow +4 13107
SP +1 1410
NAS +4 3081
Tran -11 5051
VIX +.57 17.06
WTI -121 9512
Brent +1 11259
Gas -2 311
NG +1 262.4
HO unch 312
Eth +2.6 260.6
Gold -1 1665
Slvr -20 3068
2-yr +.004 0.273%
5-yr +.002 0.680%
10yr +.015 1.652%
30yr +.016 2.765%
Tagged Post Topics Include: Economics, Isaac, Market updates
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