Market Closes - April 1, 2020

Posted on Apr 2, 2020

Corn May -1 333; Jly unch 338; Dec +2 350

Bean May -4 859; Jly -3 864; Nov unch 863 (859-71)

   Meal -6 309

   Oil +19 2624

Wheat May -8 542; Jly -9 539 (535-50); Dec -9 551

  KC -11 464; MGE -5 519

Oats +4 264

Rice +19 1424

 

Most cattle and hog futures contracts closed down the daily price limit. Expanded limits will continue on Friday.

LC Apr -450 limit 9282; Aug -450 8460; Oct -450 8795

FC Apr -675 limit 11067; Aug -675 11765; Oct -675 11815

LH Apr -450 limit 4470; Jun -450 5282; Oct -250 5140

Milk Apr -14 1431; May -24 1288

CBOT futures closed mostly lower led by KC Wheat. Futures rallied in the 9:00 a.m. CT hour when crude oil futures soared on President Trump’s comment that he expected Russia and Saudi Arabia to cut oil production. After the sharp rise, CBOT futures drifted lower into the closing bell. Closing prices were near the day’s lows. This morning’s export sales report was supportive for corn and soybeans, but extremely negative for wheat (lowest weekly total of the MYr). YTD export sales for corn and soybeans are running far behind last year’s levels and the levels needed to reach USDA 19/20 mktg year levels. The crude oil futures rally doesn’t change the fact that Americans are consuming sharply less fuel by all modes. Therefore, demand for ethanol will continue restrained.  

Cattle futures gapped lower on the open and closed down the expanded limit of $4.50 in LC and $6.75 in FC. Bearish momentum continues based on falling boxed beef values (reduced demand), weaker cash cattle prices and concerns that processing operations could be interrupted by COVID-19 infections. Choice Beef slid 1.62 to 233.55 and Select boxes fell 1.07 to 224.06. A week ago, Choice was 253.57 and Select was 242.17. LC futures have erased the big March rally based on panic beef buying at grocers; FC remain $2-3 above the March lows. Last week’s beef export sales were around 10% above the 4-week average.

Lean hog futures also gapped lower and closed down the daily limit of $4.50/cwt. Supply overwhelming demand continues to weigh on futures. FOB Plant Pork dropped 2.84 to 59.21. Loin value rose over 4.5%, but all other cuts were lower. Bellies hit another new record low at 32.51. Picnic value dropped 18% to 43.28. A week ago, FOB Plant Pork was at 77.61, and on March 23, it was 83.51 (belly value = 82.70).  Weekly pork export sales for week ending March 26 were strong with China taking half.

 

US$ +.6% 100.08

Dow +470 21413

SP +56 2527

NAS +127 7487

Tran +93 7446

  VIX -6.15 50.91

 

WTI +4.44 24.75

Brent +489 2963

Gas +11 65

NG -4 155

HO +6 99

Eth +2 84

Gold +49 1627

Slvr +67 1465

 

2-yr -.005 0.229%

5-yr +.011 0.380%

10yr -.038 0.597%

30yr -.045 1.244%

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