Market Closes - July 10, 2018

Posted on Jul 10, 2018

Corn Sep -6 348; Dec -6 361 (357-67)

Bean Aug unch 856; Sep unch 861; Nov unch 871 (862-81)

  Meal +2 332

  Oil +13 2899

Wheat Sep -16 492; Dec -15 510; Jly -12 543

   KC -11 495; MGE -10 537

Oats -3 236

Rice -22 1189

 

LC Aug -67 10545; Oct -80 10782; Feb unch 11640

FC Aug +40 15185; Oct +42 15215; Jan +50 14972

LH Jly -72 7950; Aug -300 limit 6977; Dec -262 4992

Milk Jly +2 1418; Aug +7 1459

 

CBOT futures closed steady to much lower with Chicago wheat leading the way down. Wheat was pressured by large supplies and strong export competition. Corn dropped on above-average crop ratings and forecasts for rain next week to keep the crop looking strong. The speculative funds are building a sizable short position.  Soybean futures traded a wide range but managed mid-range closes at the unchanged level. Worries about China’s tariffs on soybeans continues to hang over this market.  Also weighing on the market is Thursday’s USDA WASDE report which could show larger ending stocks estimates due to trade friction.

Live Cattle weakened in the 2018 contracts and edged higher for 2019 contracts. Feeder Cattle posted small gains as the CBOT dropped. LC was pressured by ideas that cash prices will be weaker than last week’s $110-112 market and by the sharp losses in the Lean Hog market. Choice beef ended up .40 at 207.32 and Select lost .23 to 198.39. Packer margins have also dropped significantly the past week.

 

Lean Hog futures closed sharply lower the second day this week, adding up to over $5.00/cwt losses. Futures were pressured by lower pork values and ideas the cash market has peaked.  The speculators see an opportunity to push the “short” side as contracts beyond the July LH are hitting new contract lows and the chart picture is bearish.  FOB Plant Pork dropped 1.29 to 84.10 with ham value down 7 percent.  The higher tariffs by several pork importers threaten to increase pork stocks in the freezer. If and when the export situation improves, there may be a great short-covering rally.

US$ steady

Dow +143 24920

SP +10 2794

NAS +3 7759

Tran -32 10655

  VIX -.05 12.64

 

WTI +35 7420

Brent +86 7893

Gas +2 216

NG -4 278

HO +3 222

Eth -1 142

Gold -3 1256

Slvr -5 1609

 

2-yr +.025 2.586%

5-yr +.014 2.764%

10yr +.007 2.867%

30yr unch 2.966%

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