Market Closes - February 28, 2014

Posted on Feb 28, 2014
CBOT futures closed sharply higher and near the day’s highs.  The soy complex lead the rally on lowered private crop estimates for Brazil’s soybean crop. Corn futures were also supported by concerns about the South American corn crop and uncertainty how the upheaval in Ukraine could affect grain exports. A weaker US dollar also supported commodity prices.

The large spec funds are growing their long soybean position (to over a billion bushels) and have rapidly moved from short corn to long corn to a level not seen since June 2013.

Cattle futures closed mixed as the February LC contract expired today, leaving the April LC contract as the nearby that’s trading $5-7 discount to this week’s lightly-traded cash market. Boxed beef values rose sharply again today with Choice Beef at $225.33, up 3.92.  Feeder Cattle futures lost ground due to rising feed costs.

Lean Hog futures soared higher today on strong cash fundamentals and bullish momentum.  The spec funds are long hog futures and are making big bucks on the rally.  Nearby LH futures have gained $20/cwt just this month.

Cash hog carcass prices increased $2-3/cwt and the FOB Plant Pork Cutout up 2.21 to 105.11/cwt.  The CME INDEX is in the $96.00 area compared to April LH futures at $106.85.

Rising beef and pork prices increase the opportunities for broiler producers to increase production and take market share in the meat case.

Corn Mar +9 457; May +9 463;           Jly +9 467; Dec +10 471 Bean Mar +21 1414; May +24 1414; Jly +18 1385; Nov +14 1169 Meal Mar +4 468; May +6 458; Oct +3 367 Oil +62 4152 Wheat Mar +17 599; May +13 602; Jly +12 608 KC May +8 674;  MGE +13 656 Oats May -1 462 Rice -4 1563

LC Apr +52 14497; Jun unch 13420; Oct -2 13575 FC Mar -121 17170; Apr -32 17307; Aug -32 17557 LH Apr +300 limit 10685; Jun +230 11222; Oct +155 9400 Milk Mar -8 2215; Apr -13 2084

US$ -.65%

Dow +49 16322 SP +5 1859 NAS -11 4308 Tran +32 7348 VIX -.06 13.98

WTI +29 10269 Brent +18 10914 Gas +2 298 NG +10 461 HO +1.5 302 Eth +6 229

Gold -3 1328 Slvr -10 2121

2-yr unch 0.325% 5-yr +.02 1.51% 10yr +.02 2.66% 30yr unch 3.60%

Blue Grass Stockyards Cattle Weekly Summary Report for the week ending 02/26/14 Receipts:  3,574   Last Week:  2,498   Year Ago:  2,261 Compared to last week steer and heifer calves sold mostly steady with good.  Quality was average through attractive.  Yearling steers and heifers sold steady with last week.  Slaughter cows and slaughter bulls sold steady to 2.00 lower with moderate demand. Total supply included 07% slaughter cows, 01% slaughter bulls, 11% replacements and 81% feeders.  Feeder supply 44% steers, 18% bulls, 38% heifers with 47% of feeders weighing over 600 lbs. 

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Tagged Post Topics Include: Economics, Market updates