Market Closes - December 1, 2014

Posted on Dec 1, 2014
Wheat futures soared today while corn and soybean futures closed nearly unchanged after trading both sides. Wheat added to last week’s gains as traders are concerned that Russia will limit its exports and that early winter weather has harmed the crop to be harvested in 2015. The wheat rally and a recovery in energy futures lifted corn futures out of the negative column. Corn and wheat closed near the day’s highs, but soybean futures settled 4-5 cents off the highs. Soybean futures held up despite the drop in nearby soybean meal futures. Weighing on soybeans were disappointing export shipments last week (as reported this morning) and improved conditions in South America.

Live Cattle futures erased early losses to post strong gains. Today’s trading range was $2.00 plus. Market strength came from higher beef prices at midday and a limit-up move in feeder cattle futures. The closing beef cutout was weak compared to the midday market – Choice up .08 to 257.48 and Select down .51 to 245.34. Consequently, LC futures lost some of the gains in afternoon electronic trading.

Lean Hog futures increased in the deferred contracts on midday strength in pork values and rising cattle futures. Pork values didn’t close as strong as the midday quote – FOB Plant Pork is up .78 to 93.92. A sharp drop in picnic value offset gains in ribs and ham.

Treasury yields increased for the first time in 7 days on a strong U.S. manufacturing report and expectations that cheaper crude oil will stimulate economic growth. At the same time, U.S. equities dropped on reports of poor retail sales on Black Friday and a weak Chinese manufacturing sector. A jump in the VIX by 7% indicates rising uncertainty where stocks are headed.

Corn Mar +1 390; Jly +1 405; Dec +1 418 Bean Jan +1 1017; Jly +2 1035; Nov unch 997 Meal Jan -4 362; Jly unch 342 Oil +4 3222 Wheat Mar +28 607; Jly +27 616 KC March +24 664; MGE +21 638 Oats unch 306 Rice -19 1214

LC Dec +107 16995; Feb +162 17085; Jun +90 16220 FC All LIMIT UP 300 pts - Jan 23407; Mar 23320; Aug 23442 LH Dec -20 9012; Feb +70 8892; Jun +45 9750 Milk Dec -25 1775; Jan -59 1621

US$ -.3%

Dow -51 17777 SP -14 2053 NAS -64 4727 Tran -249 8949 VIX +.96 14.29 +7.2%

WTI +316 6931 Brent +276 7291 Gas +6 188 NG -5 403 HO +6 222 Eth +7 217 Gold +37 1212 Slvr +92 1641

2-yr +.012 0.504% 5-yr +.026 1.538% 10yr +.040 2.236% 30yr +.053 2.963%

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Tagged Post Topics Include: Economics, Market updates