Market Closes - July 18, 2013

Posted on Jul 18, 2013
CBOT futures were pressured most of the trading day by improved weather forecasts in the Corn Belt (favors east over west). However, a late-day rally brought prices off the lows. Tonight’s 6—14 day maps suggest good rains in the eastern Corn Belt and above-normal temperatures in the Plains states.

It is interesting that the DECEMBER CORN contract gapped lower last night, but was able to close the gap by a half-cent with a late day rally. Watch chart support at $4.90.

Wheat futures traded near even early in the day but sold off as corn rallied. Continued wheat purchases by China would be supportive.

Cattle futures posted strong closes today, taking prices back toward the upper end of the recent trading range.  Strong equity markets reacting to good economic reports may have spurred buying.  Cash markets were not helpful as boxed beef held near steady. USDA will release its Cattle on Feed Report tomorrow afternoon. Traders expect 5 pct fewer placements, resulting in 3 pct less cattle on feed.

Lean Hog futures closed higher led by the nearby August contract that remains at a discount to the CME Lean Hog Index. The positive financial markets today should have encouraged buying.  Conversely, the Pork Cutout fell $1.27 to $98.70/cwt today. Deferred LH futures were weighed on by the recent weakness in CBOT futures.

Corn Sep +2 541; Dec -1 501 (494-502)

Bean Aug -8 1469; Sep -13 1316; Nov -18 1266 (1259-1282) Meal Aug +1 470; Dec -8 378 Oil -27 4552

Wheat Sep -5 660; Dec -5 673; Jly -6 689 KC unch 702; MGE -5 750

Oats unch 353

Rice +11 1539

LC Aug +80 12210; Dec +95 12887; Feb +75 13007 FC Aug +110 15207; Oct +105 15690; Jan +65 15840

LH Aug +82 9662; Oct +35 8562; Dec +12 8255

Milk Jly -1 1737; Aug -2 1797

US$ +.2%

Dow +78 15549 SP +8 1689 NAS +1 3611 Tran +106 6579 VIX -.01 13.77

WTI +173 10821 Brent +22 10883 Gas +2 313 NG +18 381 HO +4 311 Eth -2 250

Gold +4 1282 Slvr -8 1933

2-yr +.01 0.31% 5-yr +.02 1.33% 10yr +.04 2.53% 30yr +.06 3.64%

Blue Grass Stockyards Cattle Weekly Summary Report for the week ending 07/16/13

Receipts:  1,995   Last Week:  3,314   Year Ago:  1,764

Compared to last week steer calves sold 4.00 to 10 higher with most advance on lightweight calves under 500 lbs  with very good demand. Yearling steers sold 4.00 higher with very good demand.  Heifer calves sold steady to 5.00 higher with good demand most advance on 400-500 lbs. Yearling heifers sold steady with good demand in a light test.  Slaughter cows and slaughter bulls sold steady with good demand.

Total supply included 05% slaughter cows, 02% slaughter bulls, Less than 1% replacements and 93% feeders.  Feeder supply 56% steers,12% bulls, 32% heifers with 71% of feeders weighing over 600 lbs.

 

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Tagged Post Topics Include: Economics, Market updates