Market Closes - July 23, 2013

Posted on Jul 23, 2013
CBOT futures fell sharply especially in the nearby corn and soy complex futures.  Corn futures dropped on favorable growing conditions in most of the Corn Belt and by speculative selling as the December Corn contract broke below critical chart support of $4.90.  Funds have been significant shorts for some time and they’re happy to sell more to establish downside momentum. However, the funds probably lost more money with their long position in Soybean futures. AUGUST SOYBEAN futures lost slightly more than September Corn in percentage terms.

The August Soybean contract was also pressured by sharply lower cash basis levels in the export markets. Market rumors had China selling domestic soybean stocks (maybe an effort to buy U.S. beans cheaper).  The USDA quoted Gulf Export basis for July down 65-80 cents, and FH August down 20-40 cents. This also crushed local soybean basis at Kentucky elevators.

Cash soybean bids tonight compared to Monday night: Cairo, IL: 15.42 vs 16.65 Henderson: 15.43 vs 16.25 Owensboro: 15.43 vs 16.25 Hopkinsville: 15.17 vs 16.00 Franklin: 15.18 vs 15.94 Jeffersonville: 14.99 vs 16.17 Silver Grove: 15.03 vs 16.24

Wheat futures traded lower in sympathy with the drop in corn and soybean futures. The limited losses in wheat may indicate that wheat futures have underlying demand if/when not overwhelmed by the rest of the CBOT.

Live Cattle futures were little changed while Feeder Cattle futures closed strongly higher on the sharp drop in the CBOT.  Live Cattle futures were pressured by weak boxed beef values, but supported by strength in the nearby pits for Feeder Cattle and Lean Hogs. Boxed beef: Choice down 2.64 at 186.34; Select down 1.70 at 181.50/cwt.

Lean Hog futures responded strongly to Monday’s Cold Storage report that showed a large drawdown in frozen pork stocks during June. The morning’s FOB Plant Pork Cutout rose 2.73 to $102.02/cwt but the closing afternoon report had this value at only $99.65/cwt.

Corn Sep -18 522.5; Dec -12.5 485.5; May -12 506 Bean Aug -58 1462; Sep -25 1324; Nov -28 1260 Meal Aug -15 488; Dec -9 381 Oil -63 4478 Wheat Sep -6 654; Dec -6 665; Jly -6 681 KC -3 699; MGE -3 744

Oats -4 353

Rice +36 1577

LC Aug +2 12190; Dec +25 12860; Feb -2 12992 FC Aug +67 15360; Oct +75 15862; Jan +55 15960 LH Aug +205 9917; Oct +105 8632; Dec +67 8297

Milk Aug +4 1793; Sep +3 1874

US$ -.3%

Dow +22 15568 SP -3 1692 NAS -21 3579 Tran -63 6515

WTI +44 10738 Brent +27 10842 Gas +2 308 NG +5 373 HO +1 307 Eth -5 238

Gold +11 1347 Slvr -6 2044

2-yr +.01 0.31% 5-yr +.01 1.31% 10yr +.02 2.51% 30yr +.02 3.58% 

Farmers Livestock Market- Glasgow, KY (Weigh-in Sale) Weighted Average Report for 07/22/2013 Receipts:  1163    Last Week:  1389    Year Ago:  1175 Compared to last week: Steers over 600 lbs sold 2.00-3.00 higher; Steers under 600 lbs sold mostly 3.00-5.00 higher.  Heifers sold steady to 2.00 higher.  Today's offerings included several groups of attractive calves that were met with good to very good demand.   Supply included 20 percent over 600 lbs; 33 percent heifers.  Slaughter Cows and Bulls mostly steady.

KENTUCKY CASH GRAIN BIDS Click Here

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