Market Closes - August 6, 2018

Posted on Aug 6, 2018

Corn Sep +1 371; Dec +1 385 (382-86)

Bean Sep -9 883; Nov -9 893 (887-904)

  Meal -2 328

  Oil -7 2845

Wheat Sep +18 574; Jly +13 611 (594-612)

  KC +19 586; MGE +15 628

Oats +12 261

Rice -22 1127

 

LC Aug -27 11040; Oct -45 11155; Feb -25 11860

FC Aug -100 15185; Oct -75 15227; Jan -65 15160

LH Aug -190 5660; Oct -55 5022; Dec -72 4545

Milk Aug -4 1484; Sep -20 1548

 

CBOT futures closed widely mixed, from large gains in wheat to modest losses in soybeans. Corn was little changed as it was caught between the wheat and soybean markets. Ahead of Friday’s updated crop production and supply-demand reports, traders continue to react to the bullish weather conditions in foreign wheat countries and the bearish trade situation with China. The spec funds have sizable short positions in corn and soybeans and a long in wheat. USDA crop ratings did drop for corn and soybeans as of Sunday. The maturity for both U.S. crops is well ahead of the 5-year average.  KY crop maturities are close to normal.

 

Week ending Aug 5

U.S. Corn Conditions
.      Good/Excellent  Poor/V.Poor
This Week      71%         10%
Last Week      72%          9%
Last year      60%         13%
  ** 57% in Dough vs 37% average
  ** 12% Dented vs 6% average

U.S. Soybean Conditions
.      Good/Excellent  Poor/V.Poor
This Week      67%         10%
Last Week      70%          8%
Last year      60%         12%

  ** 75% setting pods vs 58% average

U.S. Pasture and Range
40% good/excellent vs 44% year ago.
30% poor/v.poor vs 24% year ago.
 

Live and feeder cattle futures opened this morning steady but quickly sold off to near the day’s lows. Futures were supported by Friday’s cash trade around $114/cwt, up $2-3 from the previous week. But futures already had made the major move Friday. The boxed beef market was supportive as well. Choice beef closed up .93 at 205.68 and Select up 1.24 at 198.33 (Ch/Sel spread = 7.35).

Lean Hog futures continued their bearish ways with the nearby August LH contract closing sharply lower and at a new contract low. The CME Lean Hog Index is falling daily but remains around $10 premium to the August LH contract. These two prices need to converge in the coming days. Friday’s pork cutout reached its lowest level since May, but bounced back some today. FOB Plant Pork finally improved, rising 1.13 to 72.81 only the ham value dropping. This cutout was up 1.45 at midday. The speculative crowd reportedly had a record short position in LH at the end of the last reporting period.

US$ +.2%

Dow +40 25502

SP +10 2850

NAS +48 7860

Tran +64 11161

  VIX -.37 11.27

 

WTI +52 6901

Brent +44 7365

Gas unch 207

NG +1 286

HO +1 214

Eth -1 143

Gold -5 1218

Slvr -11 1535

 

2-yr +.004 2.649%

5-yr -.009 2.807%

10yr -.011 2.941%

30yr -.002 3.091%

Kentucky Weekly Livestock Summary for the week of Jul 30-Aug 4, 2018
Receipts: 17,701       Last Week 18,406         Last Year 16,019
    Compared to last week, steer calves sold mostly steady to 4.00 higher and heifer calves were steady to 3.00 higher.  Demand was moderate to good for an attractive quality offering with moderate buyer activity.  Yearling steers and heifers sold mostly steady to 3.00 lower with moderate demand. Slaughter cows sold steady to 3.00 higher and slaughter bulls mostly steady to 2.00 higher with moderate supply and good demand.