Market Closes - April 22, 2021

Posted on Apr 22, 2021

Corn May +25 limit 650; Jly +25 limit 631; Dec +17 553 (534-57)

Bean May +36 1533 (1498-1543); Jly +35 1514; Nov +28 1338 (1310-47)

  Meal May +10 422 (413-24); Dec +7 407

  Oil May +233 6252; Dec +128 5082

Wheat May +37 710; Jly +35 710 (674-715); Dec +31 712

  KC +37 667; MGE +30 708

Oats +10 402

Rice +49 1336

 

LC Apr -145 11832; Aug -125 11672; Oct -112 12117

FC Apr -285 13225; Aug -355 14837; Oct -325 15197

LH May -15 10745; Jy -75 10225; Oct -82 8375

Milk Apr -5 1765; May -48 1868; Jun -39 1880

CBOT futures closed sharply higher on continued strong cash fundamentals for corn and soy and aggressive fund buying who are adding to their huge long positions in corn and the soy complex. The concerns for damage to Brazil’s safrinha corn crop, the cool U.S. planting season, areas of dryness in the western Corn Belt, and tight cash corn/bean stocks won’t easily or quickly be resolved. Corn, soybeans, soybean oil and all three wheat exchanges made new contract highs. Wheat futures finally exploded higher, supported by HUGE fund buying, the corn/soy rally as well as reports that China purchased a large quantity of new-crop French wheat. This adds to news that China is encouraging the feeding of grains to replace corn/soy. This rally may not pause until the spec funds decide their boat is full enough.

May and July corn futures were “lock limit higher”, up 25 cents, just after 10:30 a.m. CT. Price limits expand to 40 cents tomorrow.

The CME adjusts basic daily price limits twice per year. The change effective on May 3 will raise corn from 25 to 40 cents (60 expanded); Chicago/KC wheat from 40 to 45 cents (70 expanded); and soybeans from 70 cents to $1.00 ($1.50 expanded). Other new price limits will be soybean meal, $30/ton; soybean oil, $.035/lb; and oats, 25 cents/bu.

Cattle futures closed sharply lower, extending prices to levels mostly not seen since mid-January. Feeder cattle futures had a double-whammy given the limit-up 25-cent move in corn futures. May FC is over $16.00/cwt lower than it was 15 days ago. Despite continuing strength in boxed beef values, packers aren’t sharing the wealth. As reported on Drovers.com, Sterling Profit Tracker estimated last week’s beef packer margin at $594/head, up $31 on the week. Cash fed trade was slow today but live prices are reported $1-2/cwt lower at $120-121/cwt and dressed trade down $2-4/cwt at $192/cwt. Boxed beef climbed higher again today with Choice up 1.85 at 282.31 and Select up 1.81 at 273.69.

Lean hog futures closed lower through 2021 and slightly higher in 2022 contracts. After accounting for a reporting error, this morning’s weekly export sales report was improved over last week’s report. The most positive fact was that pork export SHIPMENTS hit a marketing year high. FOB Plant Pork finished up 1.06 at 114.70 with loins and ham up 3%, and bellies down 2%. Pork movement was strong.

U.S. stock indexes were hit after midday by a news report that the Biden administration plans to raise the capital gains tax rate to nearly 40% for those making $1 million or more.

 

US$ +.2% 91.28

Dow -322 33815

SP -38 4135

NAS -132 13818

Tran -119 14922

  VIX +1.26  18.76

 

WTI +8 6143

Brent +26 6558

Gas -1 198

NG +6 275

HO +1 186

Eth unch 220

Gold -11 1782

Slvr -39 2618

 

2-yr +.002 0.151%

5-yr -.005 0.795%

10yr -.019 1.545%

30yr -.037 2.226%

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