Market Closes - July 31, 2018

Posted on Jul 31, 2018

Corn Sep +5 372; Dec +5 386 (380-88)

Bean Sep +28 909; Nov +28 919 (889-922)

  Meal +7 340

  Oil +43 2889

Wheat Sep +7 554; Jly +5 592 (581-601)

   KC +9 556; MGE +5 606

Oats +3 236

Rice -4 1191

 

LC Aug -75 10767; Dec -47 11297; Feb unch 11677

FC Aug -217 14932; Oct -182 14995; Jan -77 14907

LH Aug -217 6112; Oct -50 5072; Dec -5 4655

Milk Aug -18 1476; Sep -11 1551

Crop futures closed sharply higher with corn and soybean futures ending near the day’s highs. Wheat futures couldn’t maintain its gains and ended near mid-range. Soybean futures led the market higher on hope that the US and China are talking to avert a lengthy trade war.  Corn and beans were supported also by forecasts for warmer, drier weather in August (http://www.cpc.ncep.noaa.gov/products/predictions/610day/. Faster maturing corn could trim yield potential. Wheat continues its uptrend that started July 12, supported by the corn/bean market but especially by falling wheat production estimates for EU and Russia (hot, dry weather).  The spec funds are fueling the rally as they add to their wheat long and work to cover their large short positions in corn and soybeans. Technically, corn futures are just 5-7 cents from the 200-day moving averages. Soybean futures are 70-80 cents below the 200-day MA.

Kentucky’s Corn and Soybean crops had significant drops in the shares rated Good or Excellent.  At the same time, the US corn and soybean crops didn’t see any drop from last week.

Live Cattle futures closed lower while Feeder Cattle posted bigger losses due to corn/bean futures moving much higher. The August LC contract remains at a discount to last week’s average cash price of $110/cwt. Boxed beef values were mixed. Choice beef ended down .45 at 204.27 and Select gained .40 to 198.38.

Lean Hog futures closed lower with the nearby August LH contract down sharply under pressure from falling cash hog prices and pork cutouts. FOB Plant Pork -.49 to 74.05 with belly value dropping 8%. Weekly slaughter numbers are rising. August and October LH contracts hit new lows. The August LH is nearly $10/cwt below the CME LH Index. But traders aren’t looking to catch this “falling knife” for now.  The hope that grain traders put in rumored US/China talks was not to be found in the hog market.

US$ +.2%

Dow +108 25415

SP +14 2816

NAS +42 7672

Tran +144 11077

  VIX -1.43 12.83

 

WTI -173 6840

Brent -72 7425

Gas -4 212

NG +4 282

HO -4 213

Eth unch 145

Gold +1 1227

Slvr unch 1553

 

2-yr +.004 2.673%

5-yr -.002 2.848%

10yr -.015 2.960%

30yr -.024 3.081%

Bluegrass Stockyards - Lexington, KY (Tues.)
Weighted Average Report for 07/31/2018
     Receipts:  533    Last Week:  928    Year Ago:  542

Compared to last Tuesday steer calves under 700 lbs sold steady with good demand; over 700 lbs sold 1.00 to 3.00 lower with moderate demand.  Heifer calves sold steady to 2.00 higher with good demand. Slaughter cows and slaughter bulls sold steady with moderate demand. 

Kentucky Farm Bureau Minute video  - Click Here

KENTUCKY CASH GRAIN PRICES Click Here

KENTUCKY LIVESTOCK AUCTIONS --  Click Here