Market Closes - February 29, 2016

Posted on Feb 29, 2016
CBOT futures closed little changed on this last day of February. Soybean meal and soybean oil price moves offset each other. The March Soybean contract touched its last low of 8.52 set January 6; the contract low is 8.47. May Soybean traded within 6.5 cents of its contract low. Corn futures also are within pennies of the contract lows. Fundamentally, global supplies are plentiful and trendline yields will keep it that way. Tomorrow begins a new month and may see the speculative funds increase their trading activity. The futures markets are at risk of hitting “sell-stops”.

February LC moved to a new high (for this move off December’s contract low) on its final day of trading. April LC becomes the nearby contract tomorrow. Cattle futures closed mixed with support coming from last Friday’s cash market strength and firm boxed beef values. Choice carcasses closed down 0.51 at 217.16; Select up 0.85 at 212.84.

Lean Hog futures closed lower in the nearby contracts and higher in deferred contracts. Some pressure came from narrowing packer margins although cash hog prices weakened today as the pork cutout gained. FOB Plant Pork gained .84 to 74.96, compared to a gain of 1.06 at midday. April LH is about $3.00/cwt premium to the last CME LH Cash Index. It has closed lower the last three trading days, but is only down $1.35.

BEGINNING TODAY – CME Livestock Futures and Options will trade 8:30 a.m. to 1:05 p.m. Central Time, Monday through Friday. The extended trading hours till 4:00 p.m. have been discontinued.

The U.S. equity markets reversed strong midday gains to close strongly lower. Reportedly, pressure came from “end of month” selling. Some U.S. economic activity metrics came out worse than expected.

Corn May -2 357; Jly -2 362; Dec -2 376 Bean May -2 861; Jly -2 867; Nov -2 873 Meal +2 262 Oil -36 3087 Wheat May +1 453; Jly +1 460 KC +3 457; MGE -1 489 Oats -1 183 Rice +10 1078

LC Apr -2 13697; Jun +22 12617; Aug -22 12115 FC Mar -50 15815; May +65 15805; Aug +77 15722 LH Apr -87 6997; Jun -10 8075; Aug +5 7982 Milk Mar +10 1376; Apr +5 1355

 

US$ +.2% Dow -123 16516 (high 16726) SP -16 1932 (high 1958) NAS -33 4558 Tran -60 7345 VIX +.74 20.55 +3.7%

WTI +112 3390 Brent +87 3597 Gas +3 132 NG -9 170 HO +3 110 Eth -1 139 Gold +19 1239 Slvr +21 1492

2-yr -.019 0.782% 5-yr -.023 1.217% 10yr -.026 1.738% 30yr -.020 2.616%

Lexington Auction Weighted Average Report for 02/29/2016 Receipts: 849 Last Week: 965 Year Ago: 539 ****Lexington Monday cattle sales now conducted at Mt. Sterling sale barn due to massive fire that destroyed Lexington sale barn on Sat. January 30. Tomorrow's Lexington Tues. sale will be held at Richmond sale barn****

Compared to last Monday steer and heifer calves sold mostly steady except 400-500 lbs sold 3.00 higher with good demand and featherweight heifers were 10.00 higher with very good demand. Quality was average through good. Slaughter cows sold steady to 1.00 lower with moderate demand and slaughter bulls sold steady with moderate demand.

Tagged Post Topics Include: Economics, Market updates