Market Closes - February 1, 2016

Posted on Feb 1, 2016
CBOT futures closed lower with bigger losses in wheat, which would have been even greater if not for a 2-cent pop in the final minutes of trading. Corn and soybean futures closed near the day’s highs. Although a weaker US dollar was supportive today, the sharp drop in crude oil futures and negative Chinese economic news weighed on the market. Last Friday, the CFTC report showed that speculators had reduced their huge short corn position significantly as January 27 – note that corn futures rallied during this period. The specs remain significantly short corn and wheat futures, less so in soybean futures.

Cattle futures closed mostly higher with considerable variability in the magnitude. Today’s trading ranges were fairly wide at $2.00 in LC and $4.00 in FC. Cattle opened strongly based on cattle trading $3-4/cwt higher last Friday, but sold off sharply by 11 am to set the daily lows; then futures rallied the rest of the trading day to post positive closes. A strong boxed beef market supported futures. The Choice-Select spread corrected (widened) today with Choice up 1.76 at 220.52; Select down 1.47 at 215.66. This compares to 219.79 and 215.19 at midday. Last Friday’s Cattle Inventory report was considered neutral to slightly bearish, but didn’t seem to impact today’s trading. The impending Winter Storm in the central Plains may support futures.

Lean Hog futures closed at 1 pm with near steady prices except for the nearby February LH contract which closed lower. LH futures lost value in late-afternoon trading as the pork market also weakened. FOB Plant Pork lost .57 to 76.45 with weakness in loins and ribs. This compares to a gain of .34 at midday. LH futures set the daily highs right after the 9 am opening but fell sharply as the cattle market collapsed. Cash hog prices were higher today ahead of the big snowstorm/blizzard in NE/IA.

Corn Mar -1 371; Jly -1 380; Dec -1 392 Bean Mar -1 881; Jly -2 888; Nov -3 890 Meal -1 271 Oil -12 3076 Wheat Mar -4 475; Jly -5 486 KC -5 467; MGE -5 495 Oats -3 197 Rice -34 1100

LC Feb +37 13567; Jun +77 12420; Aug +105 12060 FC Mar +52 15777; May +15 15597; Aug -12 15697 LH Feb -45 6535; Apr unch 7070; Jun +27 8092 Milk Feb -2 1387; Mar -6 1382

 

US$ -.6% Dow -17 16449 (16299-16511) SP -1 1939 (1920-1947) NAS +6 4620 Tran +62 6969 VIX -.22 19.98

WTI -230 3132 Brent -191 3408 Gas -5 108 NG -16 214 HO -4 104 Eth -1 142 Gold +12 1129 Slvr +11 1435

2-yr +.027 0.801% 5-yr +.033 1.367% 10yr +.020 1.950% 30yr +.007 2.764%

Lexington Auction Weighted Average Report for 02/01/2016

****Lexington Monday cattle sales now conducted at Mt. Sterling sale barn due to a massive fire that destroyed Lexington sale barn on Sat., January 30. Tomorrow's Lexington Tuesday sale will be held at Mt. Sterling sale barn tomorrow. However, Lexington Tues. sales will move to the Richmond sale barn starting next week. ****

Receipts: 613 Last week: 244 Year Ago: 321 Compared to last week steer calves sold steady on featherweights; 3.00-5.00 higher on middleweights and 5.00-10.00 higher on 600-800 lbs with most advance on 600-700 lbs due to some farmer participation in the market. Heifer calves sold mixed with light to middleweight calves weak to 4.00 lower; however 600-700 lbs sold 3.00 to 5.00 higher with good demand. Yearlings lightly tested. Slaughter cows sold 1.00 to 2.00 higher with good demand. Slaughter bulls sold steady with good demand. 

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Tagged Post Topics Include: Economics, Market updates