Market Closes - August 31, 2020

Posted on Aug 31, 2020

Corn Sep +2 348; Dec -1 358 (356-64); Mar -2 367

Bean Sep +1 951; Nov +3 953 (952-67); Mar +3 960

  Meal Oct +3 307 (305-09)

  Oil -37 3273

Wheat Sep +5 544; Dec +3 552(547-60); Jly +3 564

  KC +3 475; MGE unch 539

Oats +7 275

Rice +8 1235

 

LC Aug +127 10450; Oct +40 10530; Feb +47 11232

FC Sep +27 14030; Nov +77 14137; Jan +52 13917

LH Oct -5 5360; Dec -7 5512; Feb -40 6157

Milk Sep +5 1574; Oct +20 1784

CBOT futures closed mostly higher but nearer the day’s lows than the highs. CBOT futures were stronger overnight on ideas that weekend weather was disappointing and crop ratings would drop Monday afternoon. But once markets reopened at 830 am CDT, futures moved lower. Corn was especially disappointing in that it closed 1-2 cents lower after December traded above the July highs. Also, traders ignored a huge daily corn sale to China. However, USDA didn’t have any sales to offer soybean bulls. November soybeans traded to levels last seen on January 15, and only 20-25 cents from the November contract high. During August, the November contract rallied a dollar/bushel. Will China buy enough to keep prices up here? The spec funds have trimmed their corn short position and may be less aggressive to cover completely given the crop is still expected to be huge.

U.S Crop Progress
Corn is 63% dented vs 44% last week and 56% 5-yr avg
Corn is 12% mature vs 5% last week and 10% 5-yr avg.

Soybeans are 8% dropping leaves vs 4% last week and 8% 5-yr avg.

SPRING Wheat Harvest
   69% harvested, compared to 77% 5-yr avg.

U.S Crop Conditions
Crop      Good/Exc   Poor/V.Poor
    (  )change from last week
Corn         62%(-2)    14%(+2)
Soybean   66%(-3)    10%(+2)
Pasture     22%(-2)    46%(+4)


LC Aug +127 10450; Oct +40 10530; Feb +47 11232

FC Sep +27 14030; Nov +77 14137; Jan +52 13917

LH Oct -5 5360; Dec -7 5512; Feb -40 6157

 

Beyond the expiring August Live Cattle contract, cattle futures posted small gains in bouncing back from last week’s lower market. Cattle were pressured by lower Choice beef values and a big beef production week. Choice beef lost 1.45 to 227.95 and Select gained .46 to 215.32. The Choice/Select spread has narrowed to 12.63. Technically, feeder cattle futures posted bullish reversals. Cash trade is not established today. Last week’s pricing was mostly $105 live and $167 dressed.

Lean hog futures closed slightly lower and well below the day’s highs. Those highs came in the morning when the pork cutout was soaring, maybe due to export business. After being up 5.10 in the morning report, FOB Plant pork closed up 1.23 at 72.62. Hog futures will be challenged by rising pork production – up 1.7% week/week and up 9.5% year/year.

US$ -.1% 92.17

Dow -224 28430

SP -8 3500

NAS +80 11775

Tran -137 11185

  VIX +3.45  26.41

 

WTI -19 4310

Brent -23 4558

Gas -2 122

NG -3 263

HO -2 122

Eth unch 128

Gold unch 1966

Slvr +62 2823

 

2-yr -.002 0.133%

5-yr -.006 0.269%

10yr -.023 0.706%

30yr -.032 1.476%

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