Market Closes - August 12, 2020
Posted on Aug 12, 2020Corn 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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