Market Closes - December 2, 2019

Posted on Dec 2, 2019

KFB Annual Meeting – December 4-7
      Galt House, Louisville, KY

Corn Mar +1 382 (379-85); Jly unch 390

Bean Jan -6 870 (867-883); Jly -5 913

  Meal unch 293

  Oil -42 3016

Wheat Mar -6 535; Jly -4 539 (537-45)

  KC -8 439; MGE -5 510

Oats -3 306

Rice -1 1247

 

LC Dec -45 12075; Apr -17 12620; Jun +5 11777

FC Jan -12 14215; Apr unch 14497; Aug +25 15127

LH Dec -167 6035; Feb -202 6615; Apr -135 7257

Milk Dec +8 1938; Jan +19 1900

Corn closed steady but other CBOT futures closed lower after mostly positive overnight trade. Soybeans came under pressure from uncertainty about the US/China Phase 1 trade deal (December 15 is important date), and Brazil’s record low currency making US soybeans less competitive. Soybean futures are threatening chart support at the August/September lows. Below that there may be close to 40 cents of price risk. December soybean meal just set new contract lows. Soybean oil futures also look at risk to drop more based on the charts. The spec funds could push the soy complex over the edge, but a potential US/China deal has to be on their mind. Wheat futures dropped today, erasing part of Friday’s huge rally. Wheat has been supported of late due to deteriorating conditions/prospects for many global wheat producers.  

Cattle futures closed narrowly mixed, but traded strongly into the close. Last Friday, new highs were set for the current $20+ rally in live cattle futures. Support came from last week’s stronger cash fed market and firmer boxed beef markets. The Kansas beef plant closed by fire is beginning to harvest cattle again. Choice beef edged up .49 to 232.61, while Select gained 2.64 to 212.98.  The CH-Sel spread narrowed to 19.63.  Fed cattle carcass weights continue to climb as cattle are fed longer, hoping for rising cash prices to match the December LC futures.

Lean Hog futures closed sharply lower, which more than erased Friday’s sharp gains. Uncertainty about the US/China trade negotiation may have encouraged the sellers. FOB Plant Pork ended 1.01 higher at 82.86 as bellies rose 5 pct and ribs gained over six pct. LH futures are only a couple dollars above key chart support.

US$ -.4%  97.86

Dow -268 27783

SP -27 3114

NAS -97 8568

Tran -123 10735

  VIX +2.29  14.91 +18%

 

WTI +77 5591

Brent +43 6092

Gas -2 157

NG +5 233

HO +1 189

Eth unch 141

Gold -3 1469

Slvr -14 1697

 

2-yr +.002 1.604%

5-yr +.026 1.644%

10yr +.046 1.822%

30yr +.068 2.268%

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