Market Closes - February 4, 2015

Posted on Feb 4, 2015
The theme today was the unwinding of Tuesday’s price moves – to various degrees – in soybeans, soymeal, wheat and energy futures. A strengthening US Dollar and sharply lower energy prices set the bearish tone. The morning’s EIA report from the government showed a larger-than-expected build in crude oil inventory (to a RECORD HIGH level) which accelerated the losses in energy futures. Late in the day, the US$ rallied to the day’s highest level and Treasury yields dropped.

The “outside” markets are moving CBOT futures this week more than any fundamental news directly impacting grains and soybeans. Farmers reportedly rewarded yesterday’s rally with sales. Each day we get closer to South American supplies being more available and more price competitive than U.S. supplies.

Cattle futures closed strongly lower in sympathy with most markets losing value. Cattle rallied mid-morning but quickly turned south with other markets. Feeder futures did not trade lower than Tuesday’s lows so one can hope for some price stability. Choice Beef fell .36 to 242.75 and Select beef gained .44 to 235.58.

Lean Hog futures started lower this morning and kept on dropping. Late-day prices are even lower than the prices quoted above for pit-closes. June and July LH closed down the $3.00 limit. Cash fundamentals remain bearish. FOB Plant Pork closed 1.57 lower at 74.68 on much weaker values for butt, ham and belly cuts.

Corn Mar -2 383; Jly -2 399; Dec -2 414 Bean Mar -15 972; Jly -14 984; Nov -11 955 Meal Mar -8 333; Oct -4 317 Oil -21 3059 Wheat Mar -3 511; Jly -4 518 (high 529) KC -6 553; MGE -10 566 Oats +1 281 Rice -13 1025

LC Feb -75 15300 (15300-15470); Apr -192 14865; Oct -157 14340 FC Mar -277 19672; Apr -305 19685; Aug -227 20100 LH Feb -210 6510 (low 6505); Apr -275 6812; Jun -300 limit 7962 Milk Feb -12 1574; Mar -15 1560

US$ +.6%

Dow +7 17673 SP -9 2042 NAS -11 4717 Tran -17 8885 VIX +1.00 18.33

WTI -435 4870 Brent -330 5461 Gas -10 150 NG -9 266 HO -7 177 Eth -3 144 Gold +12 1271 Slvr +4 1736

2-yr -.016 0.488% 5-yr -.030 1.248% 10yr -.028 1.752% 30yr -.026 2.346%

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Tagged Post Topics Include: Economics, Market updates