Market Closes - February 3, 2017

Posted on Feb 3, 2017

CBOT futures closed mostly lower with the largest loss in soybean oil. With soybean harvest advancing in South America and large crops expected, buying interest was reduced going into the 3-day weekend – Presidents Day on Monday. Traders will be preparing for next Thursday’s WASDE report and updated estimates of Brazil and Argentina’s crops.  
 

Soybean futures set the day’s highs when the market opened Thursday evening, chopped around overnight and then headed lower when the market opened again at 830 am – ending up closing near the day’s lows. Corn and wheat futures also closed near the day’s lows with aggressive selling at the close of the markets. Today’s corn and soybean price action looks somewhat negative on the price charts. Old-crop corn dropped below the 200-day moving averages and soybean futures charted bearish “outside down days” with prices sitting between the 20-day and 200-day averages. Keep in mind the speculative funds have a very large long position in soybeans, meal and soybean oil futures. They appear to be close to even in corn and have a sizable short in Chicago wheat.
 

Today’s USDA Soybean Crush Report shows a bushel of soybeans in central Illinois priced at $10.24/bushel is worth $3.91 in oil and $7.69 in meal, or a total $11.60 per bushel.  The difference in value is $1.36/bushel, down from $1.52 last week and $1.12 a year ago.
 

Retail Fertilizer Trends by DTN

  • UAN Prices Spike Higher

 Read report here.


Cattle futures traded narrowly mixed with a weaker boxed beef market. Choice beef closed down 1.61 at 191.40 and Select lost .69 to 189.93.  Choice-Select Spread is only 1.47.  Live Cattle futures edged up into this week’s price gap but the gap remains major overhead price resistance. Traders are concerned that cash cattle will weaken further after this week’s $2-3/cwt loss.

 

Get the 2017 Cattle Projections from CattleFax
  Drovers online  - Read report here.


Lean Hog futures closed slightly higher except for the nearby February contract, although Feb LH traded to new highs during the day.  LH futures were supported by a strong pork market and favorable packer margins. FOB Plant Pork gained .96 to 84.46 as belly value rose another 2.5% today as processors work to meet bacon demand.
 

Corn Mar -2 365; Jly -2 380; Dec -2 393 (391-95)

    New-crop Bean/Corn ratio = 2.57

Bean Mar -10 1027; Jly -9 1046; Nov -9 1010 (1008-23)

  Meal -2 332

  Oil -73 3386

Wheat Mar -4 430; Jly -4 456

  KC -3 440; MGE -3 558

Oats +4 259

Rice +1 954

 

LC Feb +2 11690; Jun +12 101565; Aug -2 10137

FC Mar -17 12357; May -12 12237; Aug -7 12340

LH Feb -2 7032; Apr +67 7025; Jun +55 7840

Milk Feb -14 1685; Mar -20 1720

 

US$ steady

Dow +187 20071

SP +17 2297

NAS +31 5667 – Record HIGH close

Tran +138 9242

  VIX -1.13  10.80  -9.5%

 

WTI +29 5383

Brent +19 5675

Gas +2 155

NG -12 306

HO +1 167

Eth +1 153

Gold +1 1221

Slvr +5 1748

 

2-yr -.004 1.201%

5-yr -.005 1.915%

10yr +.002 2.472%

30yr +.013 3.096%
 

Kentucky Farm Bureau Minute video  - Click Here

KENTUCKY CASH GRAIN PRICES Click Here

KENTUCKY LIVESTOCK AUCTIONS --  Click Here