Market Closes - February 17, 2015

Posted on Feb 18, 2015
Soybean meal and soybean futures closed sharply higher on ideas that nearby demand remains very strong. The soybean crush report released at noon ET by NOPA confirmed a record amount of soybeans crushed in January. Soybean oil futures recovered from large losses earlier in the day and continue to have an uptrend on the chart. The weekly export inspections report from today was in line with trade expectations. Large spec funds have a sizable short position in soybean futures which could encourage buying on further price strength. Outside markets were supportive – weaker US dollar and higher energy futures.

Wheat futures shot higher when trading began at 830 am CT, but trended lower over the next 2.5 hours. The positive closing prices are nearer to the day’s lows than the highs. Traders are watching the Ukraine/Russia situation and contemplating potential winterkill in US wheat areas.

Cattle futures closed sharply lower, wiping out most, or all, of last Friday’s gains. This happened despite a strong cash cattle market last week (up $1.50-2.00/cwt) and firm boxed beef values this week. Choice beef closed up .90 at 239.12 and Select up .16 to 233.20. With the spec funds already large longs in the LC market, they may be reluctant to buy early in the week before they see additional cash market strength.

Lean Hog futures also closed sharply lower, reversing Friday’s large gains. Friday’s short-covering going into the 3-day weekend was probably reversed by bearish traders. Today’s pork market offered no support with FOB Plant Pork closed up .01 at 72.39. Since so much pork is exported, the continuing problem with west coast dockworkers doesn’t encourage traders. Technically, the April LH contract is sitting on critical chart support. If this gives way, the weekly chart has support at $61.00.

Corn Mar +2 389; Jly +3 405; Dec +3 420 Bean Mar +17 1008; Jly +17 1017; Nov +15 986 Meal Mar +10 342; Oct +8 324 Oil -8 3232 Wheat Mar +2 535; Jly +3 535 KC -1 562; MGE +2 589 Oats unch 278 Rice +15 1068

LC Feb -140 15860; Apr -250 15072; Oct -180 14452 FC Mar -240 20145; May -245 20007; Aug -212 20285 LH Apr -202 6400; Jun -175 7837; Oct -180 6892 Milk Mar +61 1613; Apr +59 1579

US$ -.2%

Dow +28 18048 SP +3 2100 – new record high close NAS +5 4899 Tran +11 9045 VIX +1.11 15.80 +7.5%

WTI +46 5324 Brent +83 6223 Gas -4 158 NG -2 278 HO unch 197 Eth +1 145 Gold -18 1209 Slvr -82 1647

2-yr +.029 0.670% 5-yr +.094 1.609% 10yr +.122 2.143% 30yr +.108 2.733% Treasury yields rose ahead of tomorrow’s 2 pm ET release of the FOMC meeting minutes.

Tagged Post Topics Include: Economics, Market updates