Market Closes - August 13, 2014

Posted on Aug 13, 2014
CBOT futures are still working through yesterday’s USDA Crop Production and supply-demand updates. Corn found some support from better-than-expected numbers, but soybeans were pressured by the negative soybean oil market(due to palm oil) and expectations that rainfall over the next week could boost yields and the 2014-15 ending stocks. The new-crop November Soybean contract closed below the July-August trading range and at a new record-low close for the November 2014 contract. Once the August soy complex contracts expire at noon CDT tomorrow, September Soybeans may become relatively more volatile; grain buyers have anticipated this by moving cash bean bids to basis the November 2014 contract. But, buyers are using September corn and wheat futures contracts for cash grain bids.

In CBOT Wheat, note the widening price spread between the September and the deferred contracts – this is a bearish sign. The Chicago September Wheat has closed lower for 5 straight days but remains above the contract low of 518 ½ set July 29. However, the KC and the MGEX September wheat contracts closed at new contract lows.

A sharp drop in the price of fed cattle today encouraged selling in cattle futures. The nearby August LC contract is now $12/cwt lower than the late-July peak of $160. Spec funds were very long cattle futures when the decline started and only add to the bearish pressure. Choice Beef dropped 1.27 to 256.88 and Select fell 3.58 to 249.55/cwt.

Lean Hog futures closed the pit trade with gains on strength in the nearby expiring August LH contract. However, LH futures fell about a dollar/cwt mid-afternoon when the afternoon pork reports were posted. FOB Plant Pork cutout dropped 2.54 to 114.48 on sharp losses in values for hams, bellies and picnics.   While the August LH contract stayed positive due to its discount to cash hog prices, the deferred contracts hit new lows for the July-August decline.

Corn Sep unch 358; Dec +1 370 (365-71); Dec’15 +1 410 Bean Sep -15 1079; Nov -13 1047 (1046-66); Nov’15 -12 1051 Meal Sep +3 369; Dec -1 342 Oil -66 3398 Wheat Sep -10 528; Dec -6 545; Jly -4 588 KC Sep -9 604; MGE -4 604 Oats Sep +10 369; Dec -1 331 Rice unch 1265

LC Aug -140 14822; Oct -112 14655; Apr -47 15002 FC Aug -17 21437; Oct -100 21270; Mar -35 20515 LH Aug +112 11520; Oct +22 9740; Feb +25 8750 Hot futures sold off in afternoon electronic trading. Milk Aug -3 2199; Sep -2 2204

US$ +.15%

Dow +91 16652 SP +13 1947 NAS +45 4434 Tran +56 8210 VIX -1.23 12.90%

WTI -13 9724 Brent -36 10266 Gas -1 272 NG -3 395 HO unch 284 Eth unch 207 Gold unch 1310 Slvr +8 1998

2-yr -.020 0.416% 5-yr -.036 1.579% 10yr -.025 2.417% 30yr -.024 3.243%

Mt. Sterling, KY Blue Grass East Stockyards Cattle Auction Report for 08/13/2014 Cattle Receipts: 675 Last Week: 938 Year Ago: 1,062 Weekly receipts: 840 Compared with last week steer calves under 400 lbs sold about steady with good demand over 400 lbs sold 2.00 to 4.00 lower with moderate demand. Heifer calves sold 2.00 to 4.00 lower with moderate to good demand. Bull and heifer calves 600 lbs and over in very light demand, some 10.00 lower in a light test. Yearling steers sold 2.00 lower in a limited comparison. Yearling heifers light test. Slaughter cows sold steady with good demand. Slaughter bulls sold 2.00 lower with moderate demand.

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Tagged Post Topics Include: Economics, Market updates