Market Closes - July 22, 2016

Posted on Jul 22, 2016

CBOT futures closed mixed but only after a day with wide trading ranges – corn, 10 cents; soybeans, 50 cents; wheat, 19 cents).  Futures weakened overnight and then fell sharply in the first 30-90 minutes of day-session trading as rain swept across Illinois. Futures then spent the rest of the day rallying to erase varying degrees of the losses. Corn and wheat actually closed near the day’s highs. But soybeans closed sharply lower as the speculative funds liquidated a piece of their long position.  Funds are short corn and wheat. Today’s 6-10 day outlook has mostly average temperatures (except above-normal in IN/OH/KY) and above-average moisture in the Corn Belt.
 

Weighing on commodity prices across the board was today’s U.S. Dollar rising .5% to reach levels not seen since early March.
 

November Soybeans hit a new 3-month low. It’s 200-day moving average is 9.53 and rising slightly each day. This may offer chart support on further weakness.  Corn futures hit new contract lows.
 

Live and Feeder cattle futures closed sharply higher today with Live erasing yesterday’s large losses. The rally was fueled by short-covering and profit-taking ahead of the weekend. While the beef market was weaker today, the USDA Cattle on Feed report after the futures market closed could be friendly for Monday’s session. August LC closed about $5.00 below this week’s cash trade.  Choice beef ended down 0.61 at 200.09; Select down 0.25 at 189.57. In today’s Cattle on Feed report, June placements were less than expected so the July 1 on-feed inventory was also less than the average trade guess.

Lean Hog futures followed the cattle rally, but cash hog and pork values were weaker. FOB Plant Pork dropped .43 to 88.48. At midday, this value was up .46.  Higher than expected frozen pork stocks and a bearish seasonal trend ahead may limit gains in LH futures. June red meat production set a new record for that month – see article at the end of this report.
 

United States Cattle on Feed Up 1 Percent
   Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.4 million head on July 1, 2016. The inventory was 1 percent above July 1, 2015.  Placements in feedlots during June totaled 1.53 million head, 3 percent above 2015.  Marketings of fed cattle during June totaled 1.91 million head, 9 percent above 2015.

Corn Sep +1 335; Dec +1 342 (333-43)

Bean Aug -26 1006; Nov -24 988 (966-1016)

  Meal -6 347

  Oil -85 3021

Wheat Sep +7 425; Dec +9 450 (432-51)

  KC +11 419; MGE +9 495

Oats unch 207

Rice -20 1040

 

LC Aug +242 10995; Dec +192 10920; Feb +190 10932

FC Aug +280 13720; Oct +210 13480; Jan +227 13000

LH Aug +82 7527; Oct +162 6390; Dec +202 5847

Milk Jly -6 1527; Aug +27 1672

 

US$ +.5%

Dow +54 18571

SP +10 2175

NAS +26 5100

Tran +107 7966

  VIX -.72 12.02

 

WTI -49 4426

Brent -42 4578

Gas unch 136

NG +9 278

HO -1 136

Eth +1 146

Gold -9 1322

Slvr -12 1969

 

2-yr +.016 0.706%

5-yr +.016 1.118%

10yr +.001 1.566%

30yr -.017 2.284%

June Red Meat Production – New Record

   Commercial red meat production for the United States totaled 4.23 billion pounds in June, up 5 percent from the 4.02 billion pounds produced in June 2015, USDA said in its monthly livestock report. Beef production, at 2.19 billion pounds, was 10 percent above the previous year. Cattle slaughter totaled 2.71 million head, up 10 percent from June 2015. The average live weight was up 3 pounds from the previous year, at 1,335 pounds.  Pork production totaled 2.01 billion pounds, up 1 percent from the previous year. Hog slaughter totaled 9.57 million head, up 1 percent from June 2015. The average live weight was down 2 pounds from the previous year, at 280 pounds.
 

Kentucky Farm Bureau Minute video  - Click Here

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KENTUCKY LIVESTOCK AUCTIONS --  Click Here