Market Closes - April 6, 2020

Posted on Apr 6, 2020

Corn 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%

“Across Kentucky” podcast  - Click Here

KENTUCKY CASH GRAIN PRICES Click Here

KENTUCKY LIVESTOCK AUCTIONS --  Click Here