Market Closes - July 24, 2019

Posted on Jul 24, 2019

Corn Sep -1 424; Dec -1 431 (428-37)

Bean Aug +5 891; Nov +4 908 (901-13)

  Meal unch 306

  Oil +29 2830

Wheat Sep +10 498; Jly +7 526 (520-27)

  KC +8 439; MGE +2 522

Oats -1 265

Rice +6 1203

 

LC Aug -15 10890; Dec +5 11430; Feb unch 11810

FC Aug +62 14282; Oct +35 14302; Jan +32 14132

LH Aug +37 8655; Oct -95 8085; Feb -20 8272

Milk Aug +5 1771; Sep +4 1802

 

CBOT futures closed mixed with wheat posting the best gains. Corn and soybeans lack significant news or fundamental changes to drive prices. Traders don’t have reliable acreage numbers to use and the weather is generally neutral for the coming week. The news of a restart in US/China trade negotiations did not help ag futures. The next USDA Crop report comes Monday, August 12.

Technically, corn and beans are about two percent above chart support. December corn is 11 cents above support at 4.20 and the November soybean is 18 cents above support at the July low of 8.90. Wheat rallied nicely on technical buying as cuts in competitors’ production forecasts caused wheat to bounce back from the new lows set in the July sell-off.

USDA is expected to announce county payment details for the MFP 2.0 on Thursday.  Secretary Perdue already has indicated a minimum of $15/acre payment for the first payment coming in August.

Cattle futures closed mostly higher with increases mostly 35 cents or less. Trading ranges were narrow as well. Traders are generally waiting for the cash market to provide direction, with hopes of an improving market. Live Cattle futures have rallied about $10/cwt the past month. Except for the August LC contract, futures are pausing below the highs posted July 11-12. The boxed beef market was a non-event today as Choice beef slipped .18 to 213.60 and Select lost .29 to 189.42.  The CH/Sel spread = 24.18.  Traders will study tomorrow morning’s beef export sales report.

Lean Hog futures closed narrowly mixed but August and October LH hit new highs for the current rally off June lows. Fundamentals are generally supportive as cash hog prices have risen sharply of late.  Unfortunately, pork values have not kept pace and therefore packer margins have reportedly turned negative. Pork values need to catch up with hog prices. FOB Plant Pork gained .83 to 81.43 with bellies up 4%, ham up 3% and ribs down 2.5%. With the US and China to talk trade again next week, hope for export sales is supportive.

US$ steady

Dow -79 27270

SP +14 3020

NAS +70 8322

Tran +58 10775

  VIX -.54 12.07

 

WTI -88 5589

Brent -66 6317

Gas -1 185

NG -7 223

HO -1 191

Eth -3 147

Gold +4 1426

Slvr +15 1662

 

2-yr -.009 2.820%

5-yr -.012 1.813%

10yr -.028 2.046%

30yr -.031 2.575%

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