Market Closes - June 14, 2016

Posted on Jun 14, 2016

CBOT futures closed mixed. Corn continues to be supported by fund buying based on hot/dry forecasts. Corn rallied into the closing bell and closed near the day’s highs. However, this afternoon’s 6-10/8-14 day forecasts don’t appear to be terribly bad in the Corn Belt.  Soybean futures closed mid-range; soybeans are not threatened as much as corn by short-term weather issues. Wheat futures closed lower for the 4th straight day and have lost 30-35 cents. Wheat was pressured by harvest progress, large wheat supplies, a stronger US Dollar and probably spread trading against corn.

Cattle futures closed higher after trading much lower in early morning trading. Traders were bargain hunting and taking profits on short positions given futures’ discount to last week’s cash price. However, cash trade has been low volume and may not be defined until Friday. Boxed beef values strengthened. Choice carcasses up 0.78 at 228.34; Select up 2.08 at 204.07.

Lean Hog futures soared today after the June LH contract expired at Noon. LH futures hit new contract highs. LH found support from stronger cash hog prices and pork values. FOB Plant Pork closed up .54 at 87.83.  The midday quote was up .93.  July LH futures are now at a significant premium to cash. Nearby LH futures have not been this high since December 2014 when prices were trending lower from the 2014 summer highs above $133/cwt. Chart resistance comes into play around $93.00, which is a 50% retracement of the 2014-2015 price collapse.

Energy and equity prices were under pressure again today as German 10-year bonds edged into negative yields. CNBC reports that 10-year yields in the UK and Japan hit record lows.  Fed Chair Janet Yellen will speak Wednesday afternoon upon completion of the FOMC meeting. No rate hike is expected.

Corn Jly +6 436; Dec +6 446 (433-47)

Bean Jly unch 1169; Nov -10 1149 (1137-58)

   Meal unch 409

   Oil +1 3252

Wheat Jly -6 485 (481-93); Dec -5 518

  KC -2 458; MGE -7 533

Oats +1 206

Rice -2 1129

 

LC Jun -40 11905 (low 11687);

   Oct +105 11485; Dec +172 11567

FC Aug +110 14215 (low 14000);

   Oct +130 13945; Jan +162 13145

LH Jly +197 8807 (low 8592);

   Aug +150 8932; Oct +42 7380

Milk Jun -3 1328; Jly -19 1510

 

US$ +.6%

Dow -58 17675

SP -4 2075

NAS -5 4844

Tran -111 7565

VIX -.47 20.50  -2.2%

 

WTI -98 4790

Brent -103 4932

Gas -5 149

NG +2 260

HO -3 148

Eth +4 173

Gold +2 1286

Slvr -5 1739

 

2-yr +.012 0.730%

5-yr +.012 1.143%

10yr +.004 1.620%

30yr -.002 2.431%

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