Market Closes - April 11, 2017Posted on Apr 12, 2017
CBOT futures closed slightly lower to higher on a volatile day of trading caused in part by the USDA WASDE report at 11 am CDT. The report contained somewhat bearish data in higher world carryout stocks number. Corn/bean/wheat futures initially dropped upon the report’s release, but quickly began to recover. By the closing bell, futures had recovered to middle or upper end of the range. Wheat futures led the market back on short-covering. Soybean futures fell to a new low for the 2017 down move; the May Soybean contract traded nearly $1.60/bushel below the high set in January. May Soybeans traded below the low set last August. Beyond today’s low, the next support may be 8.80.
Cattle futures closed strongly higher for the fourth straight day. The nearby April LC and FC contracts traded to new highs. LC futures were supported by a strongly higher boxed beef market and ideas that retailers are buying for spring grilling season which could lead to higher cash cattle prices this week. April LC has rallied to about even with last week’s cash market. Choice beef gained 1.91 to 209.37 and Select soared 3.00 to 199.60.
Lean Hog futures dropped in the nearby April LH contract, but closed higher in the rest of the LH contracts. April LH futures faced pressure from lower cash hog prices while the deferred contracts rebounded in sympathy with the strong cattle futures rally. A late-day drop in the pork cutout may pressure LH futures tomorrow. FOB Plant Pork sunk 1.53 to 75.17 as the belly value dropped 9 percent to 118.73. At midday, FOB Plant was up .26 when bellies were at steady prices. Technically, April LH may be headed to support around $60.00.
Gold, silver and Treasury prices rallied (yields declined) on the rising geopolitical risks the U.S. faces in Syria and North Korea. The 10-year Treasury Bond peaked at 2.62% just a month ago. It hasn’t been this low since November.
Corn May unch 366; Jly -1 374; Dec unch 390 (385-92)
Bean May -2 939; Jly -2 951; Nov -1 948 (941-53)
Meal unch 309
Oil -28 3107
Wheat May +4 433; Jly +6 447 (437-48)
July KC +4 442; MGE +8 535
Oats +3 220
Rice unch 1026
LC Apr +215 12325; Aug +125 10985; Oct +115 10932
FC Apr +187 13717; Aug +200 13917; Oct +245 13912
LH Apr -67 6265; Jun +72 7400; Aug +87 7495
Milk Apr +6 1516; May +22 1524
Dow -27 20631
SP -3 2354
NAS -14 5867
Tran -43 9136
VIX +1.08 15.13
WTI +32 5340
Brent +31 5629
Gas unch 176
NG -7 317
HO +1 165
Eth unch 165
Gold +20 1271
Slvr +34 1825
2-yr -.036 1.238%
5-yr -.065 1.835%
10yr -.058 2.303%
30yr -.051 2.935%
Lexington Auction Weighted Average Report for 04/10/2017
Receipts: 958 Last Week: 888 Year Ago: 604
**Lexington Monday sale held at Mt. Sterling yards while new yards is under construction**
Compared to last Monday steer calves sold mixed with lightweight steers trading 2.00 to 3.00 lower and calves over 500 lbs trading 2.00 higher with good demand for calves in thin-flesh. Heifers sold mostly steady however some featherweights 3.00 lower. Quality was average through attractive. Slaughter cows and slaughter bulls sold steady with good demand.
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