Market Closes - July 27, 2016

Posted on Jul 27, 2016

Soybean futures closed strongly higher, pulling corn up one percent. Old-crop August Soybeans gained 5 cents on new crop November with cash soybean demand providing the strength along with concerns for warmer weather in August. See 8-14 day outlook HERE. Technically, August Soybeans have support at 9.80 and 9.61 (200-day moving avg).  Today was the first day in 9 days that soybean futures traded higher than the previous day’s highest price. December Corn is at a critical resistance chart point along the downtrend line drawn off the June and July highs. Support is at 3.33. 

Wheat futures traded higher early in the day but eventually sold off to close near the day’s lows and little changed from Tuesday’s market. The stronger US Dollar weighed on wheat and other commodity prices.
 

Cattle futures closed steady to slightly higher, consolidating this week’s strong futures gains. Now it’s up to the cash cattle market to fuel further gains in futures.  Today, however, boxed beef ended the day weaker -- Choice Beef closed down .85 to 199.08 and Select fell .77 to 190.05.

Cattle feeding margins turned RED last week; see DROVER’S article on cattle and hog operating margins here.  The average cash profit per cow is down to $175 from $432 last year, according to this article.

Lean Hog futures traded steady most of the morning but eventually collapsed into the closing bell on weak cash hog prices and sharply lower pork product values. FOB Plant dropped 4.02 to 82.49 with all primals but the picnic losing value; bellies fell 17.40 to 116.39. FOB Plant is down 6.40 since Monday afternoon.  

August LH futures sit just above the contract lows established last November. August LH has taken a $37.00 roundtrip since then – hitting a contract high just 6 weeks ago above $90.00.  

Corn Sep +3 336; Dec +3 343 (339-45)

Bean Aug +17 1010; Nov +12 986 (971-95)

  Meal +3 345

  Oil -3 2953

Wheat Sep unch 415; Dec unch 441; Jly -1 488

  KC unch 413; MGE +2 488

Oats -3 197

Rice -20 982

 

LC Aug +7 11395; Dec +55 11390; Feb +10 11327

FC Aug -17 14227; Oct +2 14025; Jan -82 13360

LH Aug -292 7167; Oct -257 6105; Dec -205 5645

Milk Jly -3 1527; Aug +7 1693

 

US$ -.4%

Dow -2 18472

SP -3 2167

NAS +30 5140

Tran -119 7861

  VIX -.22  12.83

 

WTI -104 4188

Brent -148 4339

Gas -2 132

NG -3 268

HO -3 130

Eth -2 144

Gold +19 1340

Slvr +74 2042

The FOMC announced its interest rate policy is unchanged following today’s meeting. Treasury prices rallied which lowered yields (interest rates) significantly.

   2-yr -.040 0.722%
   5-yr -.065 1.090%
   10yr -.058 1.503%
   30yr -.065 2.215%

Kentucky Farm Bureau Minute video  - Click Here

KENTUCKY CASH GRAIN PRICES Click Here

KENTUCKY LIVESTOCK AUCTIONS --  Click Here