It was another trading day where the focus was on China’s economic problems and the resulting bearish impact on U.S. stocks and energy futures. Crude hit 12-year lows before recovering some. China devalued its currency by 0.5% as it tries support its exports. But this makes all of its commodity imports more expensive, UNLESS the world market price declines due to the global economic concerns.

CBOT futures set the day’s lows soon after the 830 am CT opening, as corn futures hit new contract lows. Prices rallied through mid-morning before stalling and backing down. From there, wheat rallied strongly into the close, but corn and soybeans didn’t follow along as strongly. Chicago Wheat led the market on technical buying tied to a failure to generate more selling below the previous contract lows. Wheat futures have traded higher for 3 straight days following Monday’s huge drop.

Shaken by the bearish outside markets (stocks and energy), the cattle “bears” had full control of the market today, driving futures down the daily limit of $3.00 in LC and $4.50 in FC.   Futures sold off despite another day of strong gains in boxed beef. Choice beef gained 2.56 to 230.59 and Select was up 3.21 to 223.89. Will cash cattle prices follow the beef market higher tomorrow?

Lean hog futures closed lower at 1 pm and then fell even more during the late afternoon, as did the pork cutout value. FOB Plant Pork dropped .56 to 69.78, compared to a gain of .32 at midday. LH were under pressure from the limit-down losses in the cattle markets and from higher slaughter weights this past week.

Corn Mar unch 353 (348-54); Jly unch 364; Dec unch 379 Bean Mar unch 864 (858-69); Jly -1 874; Nov -1 878 Meal -1 267 Oil -16 2962 Wheat Mar +6 468; Jly +5 480 (469-81) KC +2 463; MGE +5 495 Oats -3 209 Rice -21 1162

All LC and FC futures down the daily limit. LC Feb -300 13352; Apr -300 13430; Aug -300 12127 FC Jan -450 16382; Apr -450 16082; Aug -450 16155 LH Feb -127 5955; Apr -25 6560; Jun -50 7695 Milk Jan +7 1359; Feb +6 1326

 

US$ -1% Dow -392 16514 -2.3% SP -47 1943 -2.4% NAS -146 4689 -3.0% Tran -222 6995 -3.1% VIX +4.40 24.99 +21.4%

WTI -72 3325 Brent -48 3375 Gas -1 115 NG +13 240 HO -1 107 Eth -2 131 Gold +17 1109 Slvr +34 1431

2-yr -.032 0.952% 5-yr -.048 1.604% 10yr -.026 2.151% 30yr -.009 2.931%