Market Closes - August 5, 2014

Posted on Aug 5, 2014
Corn Sep -2 356; Dec -2 367; Dec’15 -3 410 Bean Sep -14 1081; Nov -14 1066; Nov’15 -12 1073 Meal Sep -5 356 Oil -55 3557 Wheat Sep +8 552; Jly +8 612 KC +4 643; MGE +6 629 Oats +9 360 Rice -15 1267

LC Aug +22 15845; Dec -42 15590; Apr -52 15575 FC Aug +27 22125; Oct -30 22005; Mar -37 21112 LH Aug -122 11585; Oct -195 10167; Feb -145 9020 Milk Aug -14 2162; Sep -39 2155

The market quotes page is very RED today as most commodity futures (excluding wheat, feeder cattle and natural gas) dropped in price today. Outside markets were bearish with the US dollar stronger and energy/equity prices weaker. Traders blamed rising tension between Ukraine and Russia as well as positive US economic reports that could encourage the Federal Reserve to raise interest rates sooner.

Corn and soybean futures traded inside Monday’s wide trading ranges and did not break below the new contract lows established Monday. The 2-week forecast shows the entire Corn Belt staying in below-normal temperatures and normal(west) to above-normal(east) rainfall. Expect prices to jump around as weather forecasts/rainfall change. Private crop estimates cover a wide range but USDA will settle this “argument” next Tuesday morning.

Wheat futures trended higher after mid-morning and shot up in the final 30 minutes. This makes 5 straight days higher as the funds reduce their short positions. Also bull-spreading wheat against corn and soybeans was reported.

Cattle futures closed mostly lower with additional losses made after the pits closed. Traders are looking for the cash markets to provide direction. Choice up 0.05 at 263.27; Select carcasses down 1.28 at 256.75. Technically, LC and FC charts are still in good shape.

Lean Hog charts are in terrible shape with today’s break to new lows for this move. Hog futures are getting beat up even though the cash markets are holding up. FOB Plant Pork was near steady today at 127.96/cwt. The August LH contract at $116 is about $8 below the current CME LH Index – these need to converge as the August LH contract expires on August 14.

US$ +.25% Dow -140 16429 SP -19 1920 NAS -31 4353 Tran -90 8060 VIX +1.75 16.87 +11.6%

WTI -69 9760 Brent -53 10488 Gas +1 273 NG +6 389 HO -1 286 Eth -4 197

Gold +1 1289 Slvr -43 1980

2-yr -.004 0.468% 5-yr +.008 1.666% 10yr -.002 2.489% 30yr -.006 3.289% Blue Grass Stockyards Cattle Report for 08/05/2014 Receipts: 970 Last Tuesday: 1078 Year Ago: 1246 Compared to Monday steer calves sold steady to 2.00 higher with very good demand. Heifer calves sold steady except 500-700 lbs sold 3.00 to 4.00 higher with very good demand. Yearling steers limited comparison with yesterday however compared to last week sold steady to 2.00 higher with very good demand. Yearling heifers limited comparison. 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 48% steers, 18% bulls, 34% heifers with 55% of feeders weighing over 600 lbs. KENTUCKY CASH GRAIN PRICES Click Here 

KENTUCKY LIVESTOCK AUCTIONS --  Click Here 

Subscribe to “Between the Rows” e-newsletter from the KFB Commodity Division by Clicking Here.

Tagged Post Topics Include: Economics, Market updates