Market Closes - February 4, 2016

Posted on Feb 4, 2016
Despite a second day of weakness in the US Dollar, CBOT futures closed lower, with the worst declines coming in wheat markets. The weekly export sales report was disappointing for soybeans and wheat; soybeans were a net negative due to export cancellations. Market reports indicate wheat and soybeans had “marketing year low” export sales. Technically, CBOT charts look negative except for soybean oil. March Soybeans and March Chicago Wheat closed below the 20 and 50-day moving averages. March Corn sits just above the 50-day. Old-crop corn charted “outside down” days. Chart support is basically at the lows set last Thursday and Friday. March Soymeal is less than $4.00/ton above the contract low made January 4.

Yesterday, the Energy Information Administration reported last week’s domestic ethanol production fell for the third straight week, down 2,000 barrels per day (bpd) to 959,000 bpd, or down 1.3% year over year. Inventories increased 926,000 barrels (bbl), or 4.3%, to 22.4 million bbl last week, raising the year-over-year surplus to 1.4 million bbl, or 6.6%. Inventories are the highest since April 2012.

Next Tuesday, USDA will issue the monthly WASDE Report with updated supply-demand estimates.

Live Cattle futures closed slightly higher with the February LC contract testing the late-December high at 137.87. Will this be a “double-top” and an end to the $10-11 rally off the mid-January low, or will futures break through resistance and trigger “buy-stops”? Tomorrow’s cash cattle price may decide it. Boxed beef firmed today. Choice closed up .46 at 223.03 and Select gained .46 to 218.48. At midday, Choice was 223.43 and Select was 218.80. Feeder futures closed much lower at the 1 pm close and proceeded to lose another 60-80 cents by late afternoon. Last week’s cattle inventory report indicated there is more feeder cattle outside the feedlots than expected.

Lean Hog futures closed moderately higher with support from firm hog prices and reduced slaughter during the snow storm. LH futures have risen for 2 days but haven’t quite erased the large losses posted Tuesday. The charts don’t look negative but a top at Monday’s highs is a possibility. FOB Plant Pork dropped .71 to 76.52, which is comparable to the midday quote of 76.41.

Corn Mar -2 368; Jly -2 379; Dec -2 391 (390-95) Bean Mar -2 874; Jly -2 884; Nov -1 888 (887-97) Meal -2 268 Oil +26 3124 Wheat Mar -7 473; Jly -6 482 (481-90) KC -9 460; MGE -6 494 Oats unch 196 Rice -8 1105

LC Feb +22 13707; Jun -27 12480; Aug -30 12092 FC Mar -142 15652; May -125 15540; Aug -120 15632 LH Feb +57 6512; Apr +57 7025; Jun +25 8077 Milk Feb +3 1393; Mar +9 1406

US$ -.7% Dow +80 16417 SP +3 1915 NAS +5 4510 Tran +216 7051 VIX +.28 21.93 +1.3%

WTI -51 3177 Brent -52 3452 Gas +1 103 NG -5 199 HO steady 108 Eth steady 141 Gold +16 1158 Slvr +12 1485

2-yr -.012 0.714% 5-yr -.029 1.244% 10yr -.026 1.855% 30yr -.018 2.687%

Russell County Stockyards, Russell Springs, KY Weighted Average Report for Wednesday 2/3/2016 Cattle Receipts: 1005 Last week: 418 Last year: 383 Compared to last week: Feeder steer and heifer calves sold mostly steady with the exception of fancy 500-550 pound steer and bull calves which sold 3.00 to 5.00 higher with very good demand. Yearling steers and heifers mostly steady. Slaughter cows and bulls fully steady.

KENTUCKY CASH GRAIN PRICES Click Here 

KENTUCKY LIVESTOCK AUCTIONS --  Click Here 

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Tagged Post Topics Include: Economics, Market updates