Market Closes & Blue Grass Cattle - October 1, 2012

Posted on Oct 1, 2012
  Soybean futures started lower overnight and fell harder throughout the morning, hitting the day’s lows at midday. After a small rally, prices fell back to close near the lows.  The November contract has support at the lows set the past three trading days. Support is $15.55-57, then $15.36. Spec funds were big sellers of beans, meal and soyoil. Until we get the October 11 th Crop Report out of the way, traders will fear that soybean yields are much better than forecasted in the September report. The late rains have made the beans.

  Note that this is the beginning of the period used to determine the Average Harvest Price for crop insurance purposes.

  Cattle futures closed higher, correcting some of last week’s losses.  After cash fed steer prices fell about $3/cwt last week, traders reportedly expect cash price to improve this week.  Boxed beef values were mixed today.  Cattle may have also benefited from the strength seen in the hog pit.

  After getting by Friday’s Hogs and Pigs Report without a bearish surprise, the Lean Hog futures market rallied strongly, especially in the deferred contracts where high feed costs may limit production. The October Lean Hog chart has an amazing look with the price trending higher since bottoming September 7 – with a gain of $6.50/cwt. The mid-August high of $77.70 stopped the rally today in its tracks.

Corn Dec +.5 757 (751-768); Mar +.5 760; Dec’13 +1 631

Bean Nov -41 1560 (low 1558); Mar -35 1529.5; Nov’13 -9 1329   Meal Oct -12 475; May -7 440   Oil -146 5072

Wheat Dec -18 884; Jly -13 854   KC -20 907;  MGE -21 937

LC Oct +95 12302; Dec +142 12612; Apr +105 13357

FC Oct +87 14467; Nov +127 14562; Jan +75 14812

LH Oct +40 7757; Dec +137 7512; Apr +160 8915

Milk Oct +27 2113; Nov +17 2100

Oats -4 366

Rice -23 1524

US$ -.1%

Dow +78 13515

SP +4 1444

NAS -3 3114

Tran +7 4900

 VIX +.59 16.32

WTI +19 9238

Brent -20 11219

Gas unch 292

NG +15.5 347.5

HO -2 314

Eth unch 234.5

Gold +6 1777

Slvr +11 3469

2-yr +.004 0.238%

5-yr -.009 0.615%

10yr -.015 1.618%

30yr -.010 2.813%

Blue Grass Stockyards Cattle Auction Report for 10/01/2012

Receipts:  1,220   Last Monday:  1,350  Year Ago:  1,882

   Compared to last week, steer calves sold steady to firm with good demand.  Heifer calves sold steady to 2.00 lower with moderate demand.  Yearling steers and heifers light test and not fully established.  Slaughter cows sold steady to 1.00 higher with moderate demand.  Slaughter bulls sold steady to 2.00 higher with moderate demand.

   Total supply included 11% slaughter cows, 02% slaughter bulls, 02% replacements and 85% feeders.  Feeder supply 27% steers, 33% bulls, 40% heifers with 30% of feeders weighing over 600 lbs.

 

 

Tagged Post Topics Include: Economics, Market updates