Market Closes - February 12, 2015

Posted on Feb 12, 2015
CBOT futures closed mixed but similar to where prices stood at midday. The outside markets (US$, energy, equities) were supportive to commodity prices. Soybean futures performed the best thanks to a strong weekly export sales report from USDA this morning and small cuts in crop production forecasts by the Brazilian government agency, CONAB. In old-crop soybean futures contracts, prices have formed triangle formations; daily highs have been trending lower. Watch for a breakout of this pattern.

The base price for crop insurance is being established during February. To date, RMA reports that the average futures price for Corn is $4.15 and $9.59 for Soybeans. You can follow this USDA RMA calculation by clicking here.

Live Cattle closed slightly higher and Feeders posted large gains. Both LC and FC traded lower to start the day but rallied strongly to finish the day with gains. Part of the strength was probably short-covering following yesterday’s large sell-off. Choice beef dropped .64 to 239.10 and Select lost 1.17 to 235.19.

Lean Hog futures managed moderately higher closes even as cash hog and pork values weakened. The February LH contract expires tomorrow and has basically traded sideways on Tue/Wed/Thurs. This price stability is a good sign but the April LH contract lost over $2.00/cwt during these three days; its strong premium to the February LH attracted selling. Yet LH futures have been under selling pressure for so long that a short-covering recovery could come any time. Resolution of the west coast shipping delays would be a likely stimulus. FOB Plant Pork closed down .72 to 72.09.

US$ -.9% Dow +10 17972

Corn Mar -3 383; Jly -3 398; Dec -2 413 Bean Mar +6 984; Jly +6 991; Nov +4 964 Meal Mar +1 330; Oct +1 315 Oil +26 3201 Wheat Mar -4 521; Jly -4 522 KC -5 554; MGE -2 574 Oats unch 273 Rice -5 1033

LC Feb +50 15910; Apr +2 15112; Oct +50 14477 FC Mar +155 20030; May +207 20035; Aug +262 20335 LH Feb +72 6195; Apr +67 6450; Jun +127 7850 Milk Feb +3 1578; Mar +48 1559

SP +20 2088

NAS +56 4858 Tran +70 9012 VIX -1.62 15.34 -9.5%

WTI +237 5121 Brent +239 5705 Gas +5 160 NG -8 272 HO +10 191 Eth -1 144 Gold +1 1220 Slvr +3 1679

2-yr -.024 0.632% 5-yr -.018 1.496% 10yr +.005 1.991% 30yr +.016 2.580%

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Tagged Post Topics Include: Economics, Market updates