Market Closes - February 3, 2021

Posted on Feb 3, 2021

Corn Mar +9 552 (536-52); Jly +6 537; Dec +4 451

Bean Mar +16 1371 (1342-72); Jly +15 1348; Nov +6 1156

  Meal Mar +7 435 (426-36)

  Oil +16 4448

Wheat Mar +3 648; Jly +3 633 (616-34)

  KC +6 625; MGE +4 625

Oats +3 349

Rice -27 1309

 

LC Feb -50 11547; Apr -7 12245; Jun +67 11947

FC Mar -60 13852; May -5 14432; Aug +37 15230

LH Feb +82 7237; Apr +112 7920; Jun +62 8872

Milk Feb -12 1560; Mar -20 1605

CBOT futures closed higher with March corn leading the way; however, all grain/soy futures closed at/near the day’s highs. Futures were lower overnight but rallied throughout the day. March corn made a new contract high close. Support came from market talk that China is buying U.S. corn even though it’s not making the daily sales reports and expectations that USDA will cut the 20/21 corn ending stocks forecast in next week’s WASDE Report. Tomorrow’s weekly corn export number is expected to be large. The rally in soybeans and meal just got futures back up to the top end of the recent sideways range. Both old and new-crop soybean futures are sitting just above the 50% retracement of the sharp January price drop. This market needs some good news to push prices much higher; first resistance comes at last Wednesday’s highs ($13.95 in the March). Wheat futures were down sharply early in the day session, testing last week’s lows, before being dragged higher by corn and soy complex futures. Chicago wheat charts formed “head and shoulders” tops with the January/February lows marking critical chart support (neckline). KC and MGEX wheat don’t have the same H&S formation but have similar chart support levels. Despite these chart formations, wheat is most likely to follow corn and soybean futures until supply-demand factors change sufficiently.

Cattle futures closed mixed with front-end months lower and deferred contracts higher. The front months were pressured by weaker box beef values, the slow development of the cash market and February LC’s premium to the last cash trade. Feeders were weighed down by the CBOT rally. Choice beef dropped 1.48 to 235.28 and Select fell 1.65 to 223.39 with heavy movement. Negotiated cash trade remains unestablished. But some cattle traded in the online Fed Cattle Exchange around $113.75/cwt. Reports indicate cattle are offered at $115 live and $180 dressed.  

Lean hog futures closed higher in strong follow-through buying to yesterday’s surge in values to contract highs. Buying was encouraged by reports of rising ASF and PED disease in China’s hogs. FOB Plant Pork finished down .87 at 80.23, compared to 81.94 in the morning. Thursday morning’s weekly pork export sales estimate will be key to pushing LH futures higher. Traders are optimistic regarding export demand.

 

US$ +.1% 91.12

Dow +36 30724

SP +4 3830

NAS -2 13611

Tran +5 12528

  VIX -2.40 23.16

 

WTI +119 5595

Brent +127 5873

Gas +3 165

NG -6 279

HO +2 169

Eth unch 171

Gold +2 1832

Slvr +49 2689

 

2-yr unch  0.117%

5-yr +.019 0.464%

10yr +.030 1.137%

30yr +.047 1.925%

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