Market Closes - April 21, 2014

Posted on Apr 21, 2014
Grain and oilseed futures closed lower on ideas that weather is/will improve to allow for corn planting and improvement in winter wheat conditions.  Futures sold off aggressively until around 10:30 am CT and began to recover from the lows around 11 am.  Wheat futures did not bounce off the lows as much as corn and soybean futures.  Last week’s wheat exports were disappointing.  Persistent rumors that China is not taking all its previous soybean purchases weighs on the soy complex; some of this may come to the U.S. to ease our supply tightness.  Also weighing on the market was talk that a major bank is getting out of commodities.

Tonight’s USDA crop reports show that corn did NOT get planted into the weekend as quickly as many traders had expected (low teens). Winter wheat condition on average was stable from the previous week.

Corn Planting Progress .      4/20/14   5-yr average U.S.     6%        14% KY      10%        30%

Winter Wheat Conditions – 18 States .          Good/Excellent  Poor/V.Poor This Week       34%           33% Last Week       34%           32% Last year       35%           33%

Live Cattle futures closed lower but well off the lows posted around 11:30 am CT.  The sharp jump in Boxed Beef values probably saved futures for today, but the current chart pattern looks bearish. Choice up 2.71 at 229.06; Select up 2.84 at 218.07/cwt. Will the consumer step up and support/consume high-priced beef?

Lean Hog futures dropped sharply on weak cash hog and pork markets. FOB Plant Pork Cutout dropped 1.92 to 119.42/cwt with a 9 pct loss in picnic value.  Despite the big loss today, the closes are within last Thursday’s price range.

Corn May -6 488; Jly -7 494; Dec -7 490 (487-96) Bean May -15 1499; Jly -15 1487; Nov -15 1224 (1211-43) Meal  May -3 486; Oct -5 383 Oil -41 4300 Wheat May -23 668; Jly -23 675 KC -23 742; MGE -20 719 Oats -9 395 Rice -17 1519

LC Apr -75 14345; Jun +17 13455; Oct -5 13732 FC May +5 17810; Aug +50 18190; Oct +72 18175 LH May -270 12080; Jun -247 12235; Oct -70 9860 Milk May -23 2191; Jun -26 2011

US$ +.1%

Dow +41 16449 SP +7 1872 NAS +26 4122 Tran +52 7686 VIX -.11 13.25

WTI +24 10361 Brent +42 10995 Gas +3 309 NG -5 469 HO steady 301 Eth +2 221

Gold -4 1290 Svlr -17 1943

2-yr -.004 0.395% 5-yr -.01 1.72% 10yr +.004 2.715% 30yr +.01 3.52%

Blue Grass Stockyards Cattle Auction Report for 04/21/2014 Receipts:  994   Last Monday:  1,537   Year Ago:  1,340 Compared to last week steer calves sold steady to 3.00 higher with some instances of featherweights under 400 lbs 10.00 higher with very good demand on an active market with mostly average through good quality calves.  Heifer calves sold steady to 3.00 higher with very good demand for 500-700 lbs heifers.  Market very active for 500-700 lb calves and featherweights under 400 lbs today; 400-500 lbs calves about steady.  Yearling cattle lightly tested.  Slaughter cows and slaughter bulls sold steady with good demand.

Total supply included 12% slaughter cows, 02% slaughter bulls, less than 01% replacements and 86% feeders.  Feeder supply 32% steers, 30% bulls, 39% heifers with 33% of feeders weighing over 600 lbs.

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Tagged Post Topics Include: Economics, Market updates