Market Closes - July 6, 2016
Posted on Jul 6, 2016CBOT futures closed lower in the major commodities, pressured by favorable weather and forecasts that encouraged heavy long liquidation. While corn closed sharply lower, soybeans made a huge recovery from sharp losses starting around noon that was fueled by a rally in soybean meal futures. Corn futures hit new contract lows today. Chicago and KC wheat made new contract lows yesterday.
Monday’s crop ratings showed corn at unchanged and soybeans down 2 points – with both crops in better than usual condition. The 6-10 day and 8-14 day forecasts predict the eastern U.S. will be much warmer than normal, but also wetter than normal.
FROM YESTERDAY’S NASS CROP PROGRESS/CONDITION REPORT:
Week ending July 3
U.S. Corn Conditions
. Good/Excellent Poor/V.Poor
This Week 75% 5%
Last Week 75% 5%
Last year 69% 8%
U.S. Soybean Conditions
. Good/Excellent Poor/V.Poor
This Week 70% 7%
Last Week 72% 5%
Last year 63% 9%
Live Cattle closed lower while Feeder Cattle were mixed, thanks to the lower corn futures market. Yesterday’s small gains were erased with today’s losses. Traders remain cautious regarding beef demand and the cattle market. The cash steer market should be around $120/cwt this week, so that’s a nice premium to the August LC futures and may limit downside risk in the short run. Choice beef closed up .25 to 209.08 and Select gained 2.14 to 196.93.
Lean Hog futures closed lower with huge losses in the August and October contracts. These contracts had been outperforming the July LH, but today the sellers hit them hard. The nearby July LH contract is at a slight discount to the cash market which is a positive sign given today’s stronger pork market. FOB Plant Pork gained .81 to 90.07 with ham value up 3%.
Corn Sep -9 341; Dec -10 348 (346-59)
Bean Aug -8 1101; Nov -4 1073 (1040-81)
Meal Aug -1 383
Oil -593036
Wheat Sep -5 428; Dec -5 448
KC -2 415; MGE -6 502
Oats +2 192
Rice +28 1059
LC Aug -85 11280; Oct -90 11310; Feb -60 11357
FC Aug +50 14457; Oct +7 14247; Jan -17 13577
LH Jly -47 8157; Aug -262 8062; Oct -225 6990
Milk Jly +22 1519; Aug +25 1595
US$ -.2%
Dow +78 17919
SP +11 2100
NAS +36 4859
Tran -4 7458
VIX -.60 14.98 -3.8%
WTI +133 4793
Brent +132 4928
Gas +3 146
NG +3 280
HO +5 149
Eth -2 157
Gold +7 1366
Slvr +24 2015
U.S. Treasury yields hit record lows today as the world’s investors seek their safety and higher yields (some European and Japanese bonds have zero or negative yields).
2-yr +.019 0.581%
5-yr +.013 0.951%
10yr +.006 1.373%
30yr +.002 2.140%
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