Market Closes - August 12, 2014

Posted on Aug 12, 2014
CBOT futures closed steady to lower after today’s USDA reports which had a mix of results relative to what the trading community expected. The reports were considered neutral to bearish for corn and soybeans. CBOT futures traded wide ranges in the moments after the report release but corn and soybean futures generally moved higher the rest of the day, shrinking the early losses. This price recovery may have resulted from the USDA corn estimate of 14.03 billion bushels being about 220 million bushels smaller than the average trade guess. However, the U.S. corn and soybean crops are forecast record-large. If end-of-season weather is favorable, one would expect yield forecasts to increase from today’s numbers – BIG crops get BIGGER. And rising ending stocks/use ratios are bearish.

Wheat futures traded up and down but closed quite weak as wheat supply is plentiful and faces increased competition from corn in feed markets. USDA put global wheat production at a record 716.1 million metric tons.

 View details of KY’s crop estimates from USDA by clicking here. While corn and soybean yields are down sharply from 2013, the state’s tobacco yields are equal to or better than last year’s yields.

Cattle futures fell sharply after Monday’s reprieve from the recent sharp downswing in cattle futures. It appears the funds who hold major long positions are downsizing even though the cash cattle and beef markets aren’t chasing futures lower. August Live Cattle has support at $146.57, then $144.

Lean Hog futures also fell sharply except in the nearby August LH contract which expires Thursday and is already discounted to the cash market. The weekly continuation chart has support at $111.60. Wholesale pork values fell sharply again today.

Corn Sep +2 358; Dec +1 369; Dec’15 unch 409 Bean Sep -14 1094; Nov -14 1059; Nov’15 -11 1063 Meal Sep -2 365; Dec -5 343 Oil -28 3464 Wheat Sep -8 538; Dec -11 551; Jly -8 592 KC -10 613; MGE -7 609 Oats unch 359 Rice +2 1265

LC Aug -300 limit 14962; Oct -277 14767; Apr -170 15050 FC Aug -292 21455; Oct -265 21370; Mar -240 20550 LH Aug -47 11407; Oct -300 limit 9717; Feb -147 8725 Milk Aug +12 2199; Sep +20 2200

US$ +.1%

Dow -9 16560 SP -3 1934 NAS -12 4389 Tran -3 8154 VIX -.1 14.13

WTI -71 9737 Brent -183 10285 Gas -2 273 NG +1 398 HO -3 285 Eth unch 207 Gold unch 1309 Slvr -18 1991

2-yr -.004 0.440% 5-yr +.006 1.618% 10yr +.029 2.449% 30yr +.041 3.274%

KENTUCKY CASH GRAIN PRICES Click Here

 

KENTUCKY LIVESTOCK AUCTIONS --  Click Here

 

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Tagged Post Topics Include: Economics, Market updates