Market Closes - February 23, 2015

Posted on Feb 23, 2015
CBOT futures closed steady to lower. Outside markets (stronger US dollar, lower crude oil) weighed on the market. Soybean and meal futures spent most of the day stair-stepping lower; but a rally in the last 45 minutes of trading brought prices off the day’s lows. Pressure came from disappointing soybean export shipments last week (reported this morning) and the large South American crop coming to market.

Old-crop Corn futures dropped below the bottom of the sideways trading channel in place during February and also key moving average support (20 and 100 day) – this is a negative development. We could see prices slip to the late-January low without positive news soon. December Corn closed right at chart support.

Cattle futures closed moderately lower. Live Cattle closed near the day’s lows and Feeder Cattle finished near mid-range. Last week’s $3.00 weaker cash cattle market continues to weight on the market. USDA 5-area average cash price was $158.79. Choice beef closed up .77 to 241.08 and Select gained 1.59 to 239.38. The Choice-Select Spread is into $1.80/cwt.

Lean Hog futures soared in the first hour of trading on continued short-covering (4 straight days higher) and initial reaction to news of the West coast labor dispute being resolved. However, futures slid lower during the second half of the trading day. FOB Plant Pork edged .09 higher to 71.59. Cash hog prices were strongly higher today.

Friday’s tentative agreement between labor and port operators should remove a bearish factor for cattle and hog markets. One port CEO said it would take two months to work through the backlog of freight.

Treasury yields fell sharply today, reversing much of last week’s rise in yields. Investors will be listening closely the next two days as Federal Reserve Chair Janet Yellen speaks before Congress.

Corn Mar -6 379 (377-86); Jly -6 394; Dec -6 410 (409-17) Bean Mar unch 999 (992-1006); Jly -1 1006; Nov unch 980 Meal Mar +1 348; Oct unch 326 Oil -34 3114 Wheat Mar -4 506; Jly -3 509 (507-15) KC -2 531; MGE +1 568 Oats -1 272 Rice -32 1046

LC Feb -67 15602; Apr -142 14710; Oct -102 14242 FC Mar -110 19807; May -120 19662; Aug -132 19967 LH Apr +92 6832; Jun +67 8240; Oct +132 7027 Milk Mar -16 1537; Apr -18 1514

US$ +.2%

Dow -24 18117 SP -1 2110 NAS +5 4961 Tran +12 9144 VIX +.24 14.54

WTI -142 4939 Brent -127 5895 Gas unch 164 NG -8 287 HO +8 219 Eth -3 140 Gold -4 1201 Slvr +2 1629

2-yr -.036 0.610% 5-yr -.061 1.544% 10yr -.074 2.059% 30yr -.081 2.655%