Market Closes - April 6, 2020
Posted on Apr 6, 2020Corn May -3 328; Jly -3 333; Dec -2 348 (346-50)
Bean May +1 855; Jly +2 861; Nov +4 865 (857-66)
Meal -6 297
Oil +40 2683
Wheat May +6 556; Jly +6 551 (546-56); Dec +6 560
KC +4 476; MGE +2 527
Oats +1 273
Rice +13 1468
LC Apr -450 limit 8382; Jun -55 8030; Oct +182 9032
FC Apr +217 11042; Aug +207 11650; Oct +262 11952
LH Apr +90 4112; May +415 4537; Jly +205 5477; Oct +392 5370
Milk Apr -27 1380; May -18 1200
CBOT futures closed narrowly mixed with 2% losses in soybean meal pressuring soybean and corn futures. Corn hit new contract lows as traders remain concerned about demand with ethanol use shrinking (gasoline use down sharply), cash livestock prices falling and minimal export demand. While last week’s corn export shipments were strong, Argentina may be becoming more active in the export market. This has also impacted the meal market. A $40 rally in May meal from March 16 to 24, has been nearly erased with tonight’s close. Over the same period, May Soybean futures rallied over 75 cents, but have only given up only 40 cents, thanks in part to soybean oil futures holding over 7% above the March lows. Last week’s soybean export shipments were disappointing, but traders hope China will increase purchases. Wheat closed higher on better prices in Europe/Russia. USDA’s monthly supply-demand update is on Thursday.
Kentucky’s wheat crop condition at 83% good to excellent is much better than a year ago and ahead of the 5-year average.
Live cattle fell sharply in the nearby April LC (limit down) but the deferred contracts made strong gains. April LC is over $20/cwt below last week’s late cash price of $105. Slaughter may be pressured by plants affected by COVID-infected workers. Last week’s receipts were down 7.4% from the previous week. Feeder cattle generally closed $2-3 higher, charting bullish hook reversals. Choice beef slipped .39 to 230.05 and Select fell 0.81 to 215.03. A week ago, Choice was 250.97 and Select was 238.14.
Lean Hog futures closed $1-4/cwt higher on technical buying and short-covering. LH opened sharply lower, only to rally sharply to chart some bullish key reversals. April LH had the smallest gain today as traders remain concerned that slaughter is overwhelming demand. Also supportive was a pork cutout gain of over $2.00 in the morning. This strength didn’t hold up in the afternoon. FOB Plant Pork edged up .32 to 57.69 with widely mixed price changes in the primal cuts. Rib value dropped 10%. Ham value rose 8%. April LH at $41.12 is over $19/cwt below the last CME Lean Hog Index which April LH will be settled against late this month. They have a lot of converging to do (as does April Live Cattle).
Trader/investor optimism on the COVID-19 situation resolving led to sharp gains in the U.S. equity markets, precious metals and Treasury yields. Energy did not participate after the virtual OPEC meeting was delayed to Thursday.
US$ steady 100.77
Dow +1627 22680
SP +175 2664
NAS +540 7913
Tran +532 7838
VIX -1.62 45.18
WTI -226 2608
Brent -106 3305
Gas +1 70
NG +11 173
HO -2 105
Eth unch 84
Gold +43 1677
Slvr +67 1517
2-yr +.053 0.266%
5-yr +.079 0.446%
10yr +.082 0.671%
30yr +.053 1.269%
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