Market Closes - August 6, 2014

Posted on Aug 6, 2014
CBOT futures closed higher with WHEAT lifting all boats today. Corn and soybean futures saw buying at the end of the day to put the closing prices at/near the highs. Wheat futures closed 4-6 cents off the day’s highs that were set in the morning. Chicago Wheat futures have a positive technical outlook and there are some fundamental factors adding support. Fund short-covering is building momentum.

There’s three more trading days before the USDA Crop Production Report is released. Beneficial rains are predicted the rest of the week in the southern part of the Corn Belt – if realized, it could cap the corn/bean rally going into the USDA report.

Cattle futures closed narrowly mixed as traders wait for feedlot trade to get reported. Boxed beef did close weak today. Choice down 1.30 at 261.97; Select down 0.98 at 255.77.

Lean Hog futures closed slightly higher after rising and falling a couple times throughout the trading day. Futures’ discount to cash is supportive, but pork values worked on lowering the cash price. FOB Plant Pork dropped 1.65 to 126.31/cwt.

In response to the US and the EU increasing economic sanctions on it, Russia is responding by bans on certain agricultural imports. U.S. poultry is the latest commodity banned by Russia. According to Reuters/AP, Russia imported $1.3 billion in U.S. food and ag products last year.

Investors have been buying US Treasuries and the 10-year yield has dropped to levels last seen in May. Poor economic reports from Europe and rising tensions with Russia encourage the “risk-off” trade.

Corn Sep +7 363; Dec +7 374; Dec’15 +5 415 Bean Sep +15 1096; Nov +14 1080; Nov’15 +13 1086 Meal +5 361 Oil +29 3586 Wheat Sep +15 568; Dec +14 587; Jly +12 624 KC +13 656; MGE +14 643 Oats +6 366 Rice -5 1262

LC Aug +10 15855; Feb +20 15635; Apr -25 15550 FC Aug +7 22132; Oct -7 21997; Mar +25 21137 LH Aug +55 11640; Oct +52 10220; Feb +57 9077 Milk Aug +11 2174; Sep +22 2171

US$ -.1%

Dow +14 16443 SP unch 1920 NAS +2 4355 Tran -50 8010 VIX -.50 16.37 -3%

WTI -54 9684 Brent -4 10457 Gas +3 274 NG +5 395 HO +3 288 Eth +1 198 Gold +22 1306 Slvr +21 2004

2-yr -.008 0.460% 5-yr -.016 1.648% 10yr -.014 2.469% 30yr -.008 3.270%

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Tagged Post Topics Include: Economics, Market updates