Market Closes - August 12, 2020

Posted on Aug 12, 2020

Corn Sep +3 314 (308-15); Dec +4 327 (320-28)

Bean Sep +10 880 (865-81); Nov +9 883 (867-83)

  Meal unch 284 (282-86)

  Oil +94 3156

Wheat Sep -4 491 (388-98); Dec -4 500; Jly -3 517

  KC +1 418; MGE unch 492

Oats +1 265

Rice +10 1178

 

LC Aug +170 10635; Oct +127 10957; Dec +87 11255

FC Aug +75 14525; Oct +147 14910; Jan +77 14642

LH Aug -17 5290; Oct -22 5160; Dec +10 5340

Milk Aug +30 1969; Sep +4 1639

 

Corn and soybean futures closed higher despite USDA reporting larger than expected U.S. average yields and crop sizes for both corn and soybeans. While supply forecasts were bearish, the updated WASDE tables were neutral for corn and slightly bearish on soybean stocks. And the World S&D’s were friendly to corn and soybeans. Today’s price action is friendly, at least in the short-term. December Corn tested the $3.20 low before the report and closed 7 cents above it. $3.20 is a red line that must be watched closely if higher corn futures can persist. China coming to the U.S. export market would solidify a possible market bottom. The large speculative short position in corn represents a potential fuel source for a good rally if demand picks up.  Soybean futures charted strong outside-up days with closes near the day’s highs. One point of caution is that soybean meal didn’t close higher; a huge soybean oil gain is what carried soybeans. In the coming days, the trade will get a better idea of the crop losses from Monday’s derecho that flattened so much corn across the Corn Belt. Less certain is the damage to soybeans.

USDA FSA announced total U.S. Prevent Plant Acreage of 5.4 million acres of corn and 1.2 million soybean acres. North Dakota was the top state for both crops.

KENTUCKY CROP REPORT
Corn      181.0 bu/acre    259 million bushels
Soybean  54.0 bu/acre    99.4 million bushels
Wheat     64.0 bu/acre    24.0 million bushels

Get entire Crop Production Report from USDA at https://release.nass.usda.gov/reports/crop0820.pdf

 

Cattle futures closed strongly higher adding to recent gains on support from higher fed prices and beef values. Choice beef gained 1.01 to 209.09 and Select rose .97 to 195.99. USDA reported southern Plains cattle trading $104-105/cwt, up from $100 last week. Western Corn Belt cattle reported as high as $107/cwt live basis and $165-170/cwt dressed. Formula purchases averaged 884 pounds and $161.06/cwt.

Lean hog futures closed narrowly mixed following Tuesday’s weak market. FOB Plant Pork closed up 2.05 at 72.44. Ham value shot higher after recent volatility – up 16.94 to 64.78. But loins, butts, picnics and bellies lost value on the day. Traders are anxious to see Thursday morning’s weekly export sales report to see how China’s been buying.

US$ -.3% 93.42

Dow +290 27977

SP +47 3380

NAS +229 11012

Tran +47 10936

  VIX -1.75 22.28

 

WTI +97 4284

Brent +83 4533

Gas +3 124

NG -2 215

HO +2 125

Eth +1 123

Gold -22 1911

Slvr -42 2563

 

2-yr unch 0.161%

5-yr +.009 0.299%

10yr +.015 0.673%

30yr +.022 1.369%

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