Market Closes - August 24, 2015

Posted on Aug 24, 2015
CBOT futures closed mixed but well off the morning lows caused by the huge selloff in the financial and energy markets. A large drop in the value of the US dollar encouraged buyers but soybean futures finished on the negative side since China is such a big customer. Also Brazil’s currency fell more than the US Dollar, so USA beans are less competitive. Tonight’s USDA Crop Condition Report showed the corn and soybean crops in the same condition as last week for the 18-major states.

As of August 23, 2015 Corn Conditions – 18 States . Good/Excellent Poor/V.Poor This Week 69% 10% Last Week 69 10 Year Ago 73 7

Corn Dented 39% this week vs 33% year ago and 43% for 2010-14 average.

Soybean Conditions – 18 States . Good/Excellent Poor/V.Poor This Week 63% 11% Last Week 63 11 Year Ago 70 7

Soybeans Setting Pods 87% this week vs 89% year ago and 88% for 2010-14 average.

Pasture Conditions 52% good/excellent vs 16% poor/v.poor

Cattle futures closed sharply lower with extreme losses in Feeder Cattle. While the August LC and FC contracts remain above the contract lows, the deferred contracts traded to new contract lows. Technically, FC futures are at “oversold” levels. In boxed beef today, Choice closed down 0.59 at 244.31; Select down 0.90 at 233.98.

Lean Hog futures was the big winner today with some contracts closing up the $3.00 daily limit. So despite the sharply lower cattle markets, LH futures rallied on the weaker US dollar and LH futures’ discount to the CME Lean Hog Index. FOB Plant Pork closed up .37 at 88.05.

Corn Sep +3 369; Dec +3 380; Dec16 +1 401 Bean Sep -12 893; Nov -15 874; Nov16 -14 867 Meal unch 326 Oil -81 2655 Wheat Sep +4 503; Jly +5 518 KC +5 476; MGE +2 504 Oats +1 216 Rice -25 1139

LC Aug -157 14385; Oct -152 14232; Feb -180 14420 FC Aug -117 21082; Oct -457 19490; Jan -387 18735 LH Oct +300 limit 6582; Dec +300 6200; Feb +275 6675 Milk Sep -36 1642; Oct -33 1648

 

US$ -1.8% 93.33 Traded down to levels last seen in January 2015. Dow -588 15871 -3.6% SP -78 1893 -3.9% NAS -180 4526 -3.8% Tran -277 7595 -3.5% VIX +12.7 40.74 +45%

WTI -239 3806 Brent -298 4248 Gas -9 146 NG -1 266 HO -7 140 Eth unch 144 Gold -6 1153 Slvr -54 1476

2-yr -.049 0.580% 5-yr -.059 1.378% 10yr -.038 2.012% 30yr -.011 2.733%

Lexington Auction Weighted Average Report for 08/24/2015 Receipts: 747 Last Week: 624 Year Ago: 665 Compared to last week plain through average quality calves sold sharply lower with light demand following the falling stock market and CME cattle futures. Very light demand for red-hided, off-colored, and heavy bull and heifer calves over 650 lbs. Good quality offerings 5.00 to 10.00 lower in a light supply. Yearling steers and heifers lightly tested. Slaughter cows and slaughter bulls sold steady with moderate demand.

28 replacement cattle, 111 slaughter cattle, and 608 feeder cattle. Today's supply included 39.0 percent that weighed over 600 lbs. 19.7 percent steers and 26.6 percent bull calves 1.5 percent Holstein Steers and 34.7 percent heifers of total recorded feeder supply. 91 head of slaughter cows with 94 percent going to slaughter. 20 head of slaughter bulls with 100 percent going to slaughter.

Tagged Post Topics Include: Economics, Market updates