Market Closes - August 28, 2013

Posted on Aug 28, 2013
Effective tonight, the CBOT raised initial and maintenance margins on futures by about 17 percent.  This could have caused some position liquidation today.

CBOT futures closed mixed with September corn and soybeans closing the strongest on old-crop tightness.  The CBOT continues to be a weather market with traders wanting to be bullish but fearful that the weather forecast will turn bearish.

Today’s NWS 6-14 day outlook maps show that temperatures will return to normal but moisture may remain limited.  See Maps Here.

While cash corn bids are basis the September futures, cash soybeans are based on the November futures contract – thus the September Soybean contract’s big gain won’t help farmers.  Note the September contract is at 60 cents premium to November. Cash soybean bids are highly variable depending on each elevator’s need for soybeans (having a market for them).

Cattle futures closed higher but does not indicate any major upside potential.  Feeder cattle futures benefitted again from lower corn futures.   The last trading day for August Feeder Cattle is tomorrow and for August Live Cattle is Friday.

Lean Hog futures closed lower on weakness in the pork cutout value.

The ongoing Syrian situation could impact any of the markets depending on how it plays out.  There is also debate on when the Federal Reserve will begin tapering its bond purchase program.

Corn Sep +4.5 504 (495-507); Dec -5.5 481 (479-492) Bean Sep +19 1433 (1408-1435); Nov +2 1373 (1362-1388) Meal Sep +7 463; Dec -1 429 Oil +25 4431

Wheat Sep -4 646; Dec -4 659; JLY -4 672 KC -1 706;  MGE +5 734

Oats Dec -1 348 Rice Nov -2 1571

LC Aug +35 12330; Oct +20 12692; Feb +37 13157 FC Aug unch 15472; Sep +65 15592; Jan +77 15760 LH Oct -52 8605; Dec -40 8315; Feb -40 8507 Milk Sep +7 1774; Oct +8 1800

US$ +.4%

Dow +48 14825 SP +4 1635 NAS +15 3593 Tran -6 6306 VIX -.28 16.49

WTI +47 10948 Brent +168 11604 Gas +5 308 NG +5 358 HO +3.5 319.5 Eth +2 250

Gold -3 1417 Slvr -28 2437

2-yr +.02 0.40% 5-yr +.06 1.59% 10yr +.07 2.78% 30yr +.05 3.75% Treasury yields reversed most of yesterday’s declines.

UK Ag Economic and Policy Update Newsletter In this issue:

+ Record Net Farm Income Projected for U.S. Agriculture in 2013 – Will Snell

+ A Look into Local Foods: The 2013 Kentucky Food Consumer Survey – Kevin Heidemann & Tim Woods

+ Issues for New Farmers – Michael Forsythe

+ Dairy Market Update: August 2013 – Kenny Burdine

To read this issue, click HERE.

 

Blue Grass Stockyards Cattle Report for 08/27/2013

Receipts:  1196   Last Tuesday:  1490   Year Ago:  1321

Compared to Monday steer and heifer calves sold steady to 2.00 higher as corn futures fell slightly today after yesterday’s rally.  Very good demand on a good to very good quality offering of mostly new crop calves.  Yearling steers and heifers sold steady with good demand.  Slaughter cows and slaughter bulls sold steady with good demand.

Total supply included 06% slaughter cows, 02% slaughter bulls, less than 01% replacements and 92% feeders.  Feeder supply 47% steers, 14% bulls, 39% heifers with 65% of feeders weighing over 600 lbs.

KENTUCKY CASH GRAIN BIDS Click Here

Tagged Post Topics Include: Economics, Market updates