Market Closes - February 5, 2015

Posted on Feb 5, 2015
The outside markets provided the impetus for higher prices at the CBOT. The US dollar weakened again and energy prices shot higher. Soybean oil futures soared nearly 4 percent on support from energy and the palm oil market (up nearly 5 pct). This lifted soybean futures. Wheat futures closed strongly higher and have performed the best this week. Traders are optimistic that the US will get some wheat export business. Corn soared Tuesday with the other markets but have moved sideways since then.

Choice beef closed down 1.57 to 241.18 and Select lost .19 to 235.39. In late afternoon trading, feeder cattle futures trimmed losses posted in the pit – with March and April FC actually turning higher. This reversal after probing new lows is a good sign. Live Cattle futures also traded higher into the late afternoon. Apparent stability in cash fed cattle prices (which are $5-6 premium to Feb LC) are keeping LC futures from sliding even as the hog market collapses.

The hog market is collapsing as futures move to new contract lows on a daily basis. With pork production quoted last week at +8 pct year/year (much less PEDv this year) and the export problems at west coast ports (labor/mgmt dispute), supplies appear to be overwhelming demand. At some point this “oversold” market will correct higher, but when? Hog herd expansion plans may be reconsidered.

NOTE: CME Group announced it will close all grain and livestock futures trading pits in Chicago by July 2, 2015. Options trading will continue in pits relocated to the CME financial trading room.   Click HERE.

Corn Mar +2 385; Jly +1 400; Dec +2 416 Bean Mar +9 981; Jly +9 993; Nov +10 965 Meal Mar -1 331; Oct unch 317 Oil +112 3171 Wheat Mar +15 526; Jly +10 528 (hi 532) KC +11 564; MGE +13 579 Oats +7 288 Rice +20 1045

LC Feb +42 15342; Apr -62 14802; Oct +50 14390 FC Mar -107 19565; May -115 19647; Aug -87 20012 LH Feb -182 6327; Apr -185 6627; Jun -157 7805 Milk Feb +6 1580; Mar +18 1578

US$ -.7%

Dow +212 17885 SP +21 2063 NAS +48 4765 Tran +82 8967 VIX -1.40 16.93

WTI +222 5067 Brent +243 5659 Gas +4 152 NG -6 260 HO +4 180 Eth unch 144 Gold +1 1265 Slvr -14 1725

2-yr +.008 0.520% 5-yr +.003 1.292% 10yr +.012 1.807% 30yr +.029 2.416%

KENTUCKY CASH GRAIN PRICES Click Here 

KENTUCKY LIVESTOCK AUCTIONS --  Click Here 

Subscribe to “Between the Rows” e-newsletter from the KFB Commodity Division by Clicking Here.

 

Tagged Post Topics Include: Economics, Market updates