Market Closes - January 24, 2019

Posted on Jan 24, 2019

Corn Mar -2 377 (376-80); Dec -1 401 (400-03)

Bean Mar +1 916 (909-919); Nov unch 956 (951-59)

  Meal -1 312

  Oil +13 2951

Wheat Mar -4 521; Jly -3 534 (533-40)

  KC -3 511; MGE +1 576

Oats -4 291

Rice -8 1067

 

LC Feb -20 12535; Jun +15 11700; Aug +27 11395

FC Jan +75 14377; Apr +70 14537; Aug +45 14972

LH Feb -95 5982; May -97 7030; Jly -80 8035

Milk Feb -1 1396; Mar -14 1408

 

CBOT futures closed narrowly mixed with little new fundamentals to trade on. Weighing on the market was a stronger US Dollar and a negative comment regarding a possible China trade deal from Commerce Secretary Ross. Soybeans managed to bounce back from opening losses in part due to slightly lower soybean production estimates from South American sources. Keep a close watch on the March Soybean chart as the wedge formation narrows and increases the odds of a technical breakout UP or DOWN.

LC and FC futures closed higher except for Feb/Apr LC, and closed near the day’s highs. Cattle were supported by firm boxed beef values. Choice beef ended up .54 at 217.75 and Select gained .10 to 212.14.  Feeder cattle added on to yesterday’s huge gains as traders cover short positions.

Lean Hog futures lost about a dollar/cwt today after opening this morning at near-steady values. LH futures closed near the day’s lows. LH was pressured by lower hog prices and further weakness in the pork cutout amid heavy slaughter volume this week. The negative trade comment from Commerce Secretary Ross didn’t help. FOB Plant pork dropped 1.43 to 67.27, as ham value fell 7 percent and loins were 2 percent lower. This is down 3.56 cents per pound from Monday’s closing cutout value. The April LH contract moved to a new low for this move and traded within 15 cents of closing the chart gap mentioned in yesterday’s commentary.

There are more negotiations attempting to get the rest of the government open – at least for a few days/weeks. A temporary opening would let USDA and other agencies get caught up on reporting supply/demand data. The market needs this information, but it could push prices the wrong way.

US$ +.4%  96.53

Dow -22 24553

SP +4 2642

NAS +48 7073

Tran +108 9843

  VIX -.63 18.89

 

WTI +51 5313

Brent -5 6109

Gas unch 139

NG +12 310

HO unch 189

Eth -1 126

Gold -4 1280

Slvr -8 1530

 

2-yr -.027 2.564%

5-yr -.043 2.548%

10yr -.041 2.714%

30yr -.036 3.033%

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