Market Closes - January 28, 2016

Posted on Jan 28, 2016
CBOT futures closed lower, led by the soy complex after traders learned that China cancelled a US soybean export order of 14 million bushels. Business should transition to Brazil as harvest picks up. March Soybeans closed below the sideway trading range in place since January 13 and also below the 50-day moving average which acted as support. Chart support is found at 8.57 and 8.52. On the other hand, the November Soybean contract closed right at the bottom of the trading range with risk to 8.68-8.70. Some negative fundamentals for corn include negative operating margins and declining production for ethanol. Oil and gasoline futures’ strength is supportive.

Cattle futures closed down slightly; this follows a strong rally which began 7 days ago. Live Cattle sit about $3.00 below the last highs posted around New Years; Feeder Cattle are $6-7 below those highs. Futures need some support from the cash market which isn’t established this week yet. Boxed beef closed poorly -- Choice beef lost 1.21 to 220.12 and Select gained .41 to 215.43. These are weaker than midday quotes.

The Cattle Inventory Report comes out Friday afternoon and will show how much the beef herd has expanded. One estimate has a 3-percent increase in the number of beef cows and heifers that have calved.

Lean Hog futures closed near steady to lower – after hitting new highs for this rally which started before Christmas. February LH is $10.00 above the December low. Chart resistance is found at $70, $73 and $75. FOB Plant Pork ended UP 1.16 at 76.93 on stronger values for loins (+4%). This is almost a dollar/cwt better than the midday quote.

Corn Mar -4 365; Jly -4 375; Dec -3 387 Bean Mar -15 868; Jly -15 876; Nov -14 880 Meal -6 267 Oil -18 3069 Wheat Mar -4 472; Jly -4 484 KC -3 465; MGE -1 495 Oats -2 199 Rice +4 1131

LC Feb -30 13542; Jun -55 12397; Aug -25 12040 FC Mar -50 15942; May -77 15820; Aug -92 15932 LH Feb -7 6530; Apr -77 6970; Jun -30 7977 Milk Jan +2 1374; Feb -1 1389

 

US$ -.4% Dow +125 16070 SP +10 1893 NAS +39 4507 Tran -54 6702 VIX -.69 22.42

WTI +142 3372 Brent +146 3456 Gas +5 112 NG +7 223 HO +3 106 Eth steady 141 Gold -1 1115 Slvr -22 1424

2-yr -.016 0.825% 5-yr -.030 1.399% 10yr -.025 1.978% 30yr -.007 2.785%

Lexington, KY - Blue Grass Stockyards Cattle Weekly Summary Report for the week ending 01/19/16

Receipts: 1,292 Last Week: 2,266 Year Ago: 1,564 **Total receipts include 339 head sold in cow sale Wed. night Compared to last week steer and heifer calves sold steady to 3.00 higher with moderate demand on an average through attractive quality offering. Yearling steers sold 1.00 to 2.00 higher with moderate demand. Slaughter cows 2.00 to 3.00 higher with moderate demand. Slaughter bulls sold steady to 1.00 higher with moderate demand.

Tagged Post Topics Include: Economics, Market updates