Market Closes - July 19, 2013

Posted on Jul 19, 2013
CBOT futures closed mostly higher led by the soy complex, especially the AUGUST contracts of soybeans and soybean meal.  Overnight weakness in corn was tied to yesterday’s forecasts for rain in the Corn Belt over the next several days.  However, prices of CBOT futures rallied during the day as traders reduced exposure in short positions going into the weekend.  Traders reacted to the midday forecasts that reduced rain for the western Corn Belt.  Viewing some local Iowa and Nebraska forecasts, it doesn’t look promising for inch-plus rains.  Sunday night’s weather update may be one of the most important of the season.  Follow this link for computer projections of rain totals --  http://www.hpc.ncep.noaa.gov/qpf/day1-2.shtml

DECEMBER CORN tested $4.90 chart support on the opening of pit trade, but then spent the day rallying to close near the day’s high. CLICK for CHART.

WHEAT futures have been gaining some support from export sales, including to China.  Some wheat is also being used to fill in for corn shortages in U.S. feed rations and ethanol production.

Live Cattle futures traded both sides of unchanged but closed down slightly ahead of this afternoon’s Cattle on Feed Report which came in near trade expectations.  See report below.  Cash cattle reportedly sold for steady money in the southern Plains and boxed beef values were mixed.

Corn Sep +3 544; Dec unch 501 (491-501.5); May unch 520

Bean Aug +22 1491; Sep +10 1326; Nov +8 1274 (1260-1278) Meal Aug +12 482; Dec +5 382 Oil -2 4550

Wheat Sep +4 664; Dec +2 675; Jly +2 690 KC +3 705; MGE unch 750

Oats +2 355

Rice +16 1555

LC Aug -12 12197; Dec -15 12872; Feb +5 13012 FC Aug +17 15225; Oct +30 15720; Jan +10 15850

LH Aug -15 9647; Oct -65 8497; Feb -20 8435

Milk Jly +3 1738; Aug +34 1823

US$ -.2%

Dow -5 15544 SP +3 1692 NAS -24 3588 Tran +8 6587 VIX -1.23 12.54

WTI +43 10847 (high 10932) Brent -27 10843 Gas +2 313 NG -4 377 HO -1 309 Eth -3 247

Gold +11 1296 Slvr +10 1949

2-yr -.01 0.30% 5-yr -.03 1.30% 10yr -.04 2.49% 30yr -.06 3.56%

United States Cattle on Feed Down 3 Percent

Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.4 million head on July 1, 2013. The inventory was 3 percent below July 1, 2012. The inventory included 6.53 million steers and steer calves, down 3 percent from the previous year. This group accounted for 63 percent of the total inventory.  Heifers and heifer calves accounted for 3.78 million head, down 4 percent from 2012.

Placements in feedlots during June totaled 1.59 million, 5 percent below 2012. Net placements were 1.52 million head. During June, placements of cattle and calves weighing less than 600 pounds were 315,000, 600-699 pounds were 232,000, 700-799 pounds were 415,000, and 800 pounds and greater were 625,000.

Marketings of fed cattle during June totaled 1.90 million, 4 percent below 2012. Marketings for the month of June are the lowest since the series began in 1996.

Other disappearance totaled 63,000 during June, 5 percent below 2012.

 

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Tagged Post Topics Include: Economics, Market updates