Market Closes - January 6, 2016

Posted on Jan 6, 2016
Ag commodity futures changed very little in price today even as the outside markets – energy, equities, bonds, gold – made significant moves. Energy futures collapsed to 7-year lows. The U.S. stock market dropped sharply on global economic concerns, lower energy prices and geopolitical tensions. U.S. treasury yields fell significantly as investors sought a “safe haven”. China’s currency hit a new 5-year low against the US Dollar; it has dropped 4% in the last two months.

Traders will be preparing for the January 12th Crop and WASDE reports from USDA to put a final number on 2015 corn and soybean production. Average trade guesses are little changed from USDA’s last report in November.

Corn and some wheat contracts traded down to new contract lows before recovering today. Soybeans also traded lower early this morning before rallying strongly to chart “outside up” days. Per the last CFTC report, speculative funds have a very large short position in soybeans and are short corn and wheat as well. There are reports of early soybean harvest in Brazil.

Cattle futures closed steady to slightly higher, led by the Feeder Cattle market. Cash trade looks to be steady to higher before the week ends. Boxed beef was very strong as Choice beef soared 5.72 to 228.03 and Select was up 4.07 at 220.68. Live Cattle futures have been trading sideways in a narrow range for the past 7 trading days. Feeder futures traded actively in the afternoon – weakening first, then recovering.

Lean Hog futures closed only slightly lower on little market news. Cash hog prices were weaker but pork values gained. FOB Plant Pork gained .45 to 70.34. The February LH contract is at least $7/cwt premium to the CME Index.

Corn Mar unch 353; JLy unch 364; Dec unch 378 Bean Mar +7 865; JLy +5 874; Nov +4 879 Meal +2 269 Oil -3 2978 Wheat Mar +1 463; JLy +2 476 KC +1 461; MGE +2 490 Oats +2 212 Rice -9 1183

LC Feb -25 13652; Apr -5 13730; Aug +52 12427 FC Jan +55 16832; Apr +57 16532; Aug +37 16605 LH Feb -27 6082; Apr -22 6585; Jun -35 7745 Milk Jan +6 1356; Feb -10 1320

 

US$ -.2% Dow -252 16907 SP -26 1990 NAS -56 4836 Tran -147 7217 VIX +1.11 20.45 +5.7%

WTI -191 3406 Brent -194 3448 Gas -9 116 NG -4 228 HO -4 109 Eth -3 133 Gold +15 1093 Slvr +2 1400

2-yr -.048 0.980% 5-yr -.078 1.647% 10yr -.078 2.172% 30yr -.075 2.936%

Lexington Auction (Tues) Weighted Average Report for 01/05/2016 Receipts: 1501 Last Week: 0 Year Ago: 1111 Compared to yesterday middleweight steer calves sold 4.00 to 5.00 higher with good demand; very good demand for weaned and thin-fleshed offerings. Middleweight heifer calves sold 3.00 to 4.00 higher with good demand; very good demand for good quality 600-700 lbs heifers. Quality was good through attractive. Market noticeably higher than before the holiday season. Slaughter cows and slaughter bulls sold steady to weak with moderate demand.

Tagged Post Topics Include: Economics, Market updates