Market closes and rainfall forecast from Isaac - August 27, 2012

Posted on Aug 27, 2012
Corn Sep -8 794.5; Dec -8 801 (800-818);

May -6 795; Dec’13 +1 648

Beans Sep -8 1730; Nov -13 1719 (1714-1760.5);

May -3 1542; Nov’13 -1 1322

Meal Sep -1.6 532;  Dec -4 519; Jly unch 429

Oil -33 5591

Wheat Sep -5.5 862; Dec -7 881; Jly -3 849

KC -3 873; MGE -6 913

LC Aug -147 11840; Oct -97 12347; Feb -65 13105

FC Aug -22 14027; Oct -50 14392; Jan +5 14832

LH Oct +87 7325; Dec +47 7105; Apr +25 8765

Milk Sep -6 1904; Oct -11 1990

Oats -9.5 379

Rice -10 1531

 

CBOT Soybean futures lead the market today.  They pushed higher on Sunday night on Friday’s release by ProFarmer of a smaller than expected production forecast.  However, after midnight, prices started to slide lower and finally hit bottom mid-morning and then traded sideways the rest of the day.  It appears the early morning slide in crude oil futures and realization that a large number of soybean acres will get plentiful moisture this week encouraged long liquidation (profit-taking). The soybean futures charts have bearish reversals but only time will tell if this matters given the exceptionally tight supply-demand situation we have until the next South American crop arrives.

Live Cattle futures closed lower as cash cattle and boxed beef are likely to be weak through the Labor Day holiday.  The meat markets are being deluged with pork. Last week, USDA reported hog slaughter was up 4.6% from the prior week and up 6.7% over a year ago. Pork production was 7.25% above a year ago. Last week saw 508 million pounds of beef and 435 million pounds of pork produced. Broiler production totaled 656 million pounds.

Lean Hog futures were surprisingly higher despite the bearish hog/pork situation.  The Pork Cutout value dropped $1.60 to $84.72/cwt.  This compares to 89.56 last Tuesday.

Financial markets made little change today, but the VIX index jumped as traders buy protection since U.S. and European policymakers could make news later this week at a meeting in Jackson Hole, WY.

 

US$ +.1%

Dow -33 13125

SP -1 1410

NAS +3 3073

Tran -45 5073

VIX +1.17 16.35

WTI -46 9569

Brent -117 11242

Gas +8 316

NG -4.5 266

HO +1 312

Eth -1.5 258.6

Gold -6 1664

Slvr +5 3067

2-yr -.004 0.268%

5-yr -.024 0.686%

10yr -.034 1.652%

30yr -.037 2.762%

This map only runs through Saturday evening and the storm track could change, so stay tuned.

http://www.hpc.ncep.noaa.gov/qpf/qpf2.shtml

 

Tagged Post Topics Include: Economics, Market updates, Precipitation