Market Closes - July 11, 2013

Posted on Jul 11, 2013
The market made it through today’s USDA crop reports without a major shake-up.  For 2013-14 ending stocks forecasts, USDA’s numbers were above expectations for corn and soybeans, but below the average trade guess for All Wheat.  Also World Wheat Ending Stocks were 8.9 mmt below expectations, ending at 172.4 mmt; this appeared to be the most “bullish” statistic in the reports.

Expectations of hotter and drier weather over the next two weeks is the leading factor in today’s CBOT rally which was led higher by CORN.  Tonight’s 6-14 day forecasts keep this weather outlook in place.  See maps at: http://www.cpc.ncep.noaa.gov/products/predictions/610day/

The JULY CBOT contracts end trading at Noon CDT tomorrow.

Live Cattle futures closed little changed as traders wait for better direction from the cash markets.  However, boxed beef values softened again -- Choice down 0.35 at 192.72; Select down 1.34 at 184.71/cwt.   Feeder Cattle futures lost value as the CBOT rallied.

Lean Hog futures closed lower except for the nearby JULY LH contract (expires Monday).  Falling pork values weighed on futures with closing prices near the day’s lows. FOB PLANT Pork Cutout dropped 1.61 to $100.75/cwt.

A weaker US dollar seen the past two days is favorable for exporting more beef and pork.

The U.S. House of Representatives passed its version (without a nutrition title) of the Farm Bill today 216-208. The next step would be a House-Senate Conference Committee.

Corn Jly +7 717; Sep +7 561; Dec +5.5 527

Bean Jly +9.5 1601; Aug +7 1472; Nov +6 1291 Meal Aug +8 458; Dec +6 388 Oil -49 4653

Wheat Sep +4 683; Dec +4 696; Jly14 +4 712 KC -1 708;  MGE -2 767

Oats unch 356

Rice +9 1538

LC Aug -15 12192; Dec unch 12845; Feb +2 12962 FC Aug -42 15012; Oct -62 15417; Jan +10 15715

LH Jly +25 10217; Oct -35 8425; Dec -60 8145

Milk Jly -3 1738; Aug -21 1782

US$ -.8%

Dow +169 15461 SP +22 1675 NAS +58 3578 Tran +78 6472 VIX -.2 14.01

WTI -180 10472 Brent -103 10748 Gas +3 304 NG -7 361 HO unch 300 Eth +3 247

Gold +37 1284 Slvr +90 2005

2-yr -.02 0.34% 5-yr -.07 1.39% 10yr -.06 2.57% 30yr -.03 3.63%

Fed Chairman Bernanke’s dovish comments following a speech yesterday (after the markets closed) caused a sharp rally in financials today resulting in new record closes for the Dow Jones Index and the S&P 500 Index.  The lower Treasury rates helped weaken the US dollar’s value.

Blue Grass Stockyards Cattle Weekly Summary Report for the week ending 06/09/13 ---------------------------------- Receipts:  3,314   Last Week:  2,797   Year Ago:  2,640 **Total receipts include 822 head sold in CPH sale Wed. night.

Compared to last week-no comparison as markets were closed for Holiday, however compared to two weeks ago steer calves 2.00 to 3.00 higher with very good demand, heifer calves steady to firm with good demand.  Yearling steers sold 4.00 to 5.00 higher with very good demand.  Yearling heifers 5.00 to 6.00 higher with very good demand for 700-800 lbs yearlings.  Slaughter cows sold steady to weak, slaughter bulls sold 1.00 lower with good demand.

Total supply included 05% slaughter cows, 01% slaughter bulls, Less than 1% replacements and 94% feeders.  Feeder supply 53% steers, 10% bulls, 37% heifers with 71% of feeders weighing over 600 lbs.

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Tagged Post Topics Include: Economics, Market updates