Market Closes - June 23, 2014

Posted on Jun 23, 2014
CBOT futures moved higher overnight on ideas that heavy rains damaged crops, but more traders think that the rain makes grain and took corn down sharply. Old-crop soybean futures recovered from the morning sell-off as any supply shortages will occur in soybeans, not corn or wheat.  Next Monday’s Quarterly Grain Stocks Report will give traders new data on the supplies available to the market until harvest.

Today’s crop condition report found corn and soybeans as expected.

Corn future led the market lower as the spec funds continue to hold a large Long position, so they are likely to be sellers as a “made crop” gets more likely.

Corn Conditions – 18 States .        Good/Excellent  Poor/V.Poor This Week       74%            5% Last Week       76%            4% Last year       65%            8%

Soybean Planting Progress This Week    5-yr Avg. U.S.     95%         94% KY       80%         84%

Soybean Conditions – 18 States .        Good/Excellent  Poor/V.Poor This Week       72%            5% Last Week       73%            4% Last year       65%            7%

Winter Wheat Harvested – 18 States 33% this week versus 19% last year and 31% for 5-year average.

U.S. Pasture: 55% good/excellent vs 53% year ago. 16% poor/v.poor vs 23% year ago. Cattle futures closed higher and are at/near the highs.  Prices are supported by recent strength in boxed beef values. Boxed beef values increased -- Choice up 1.88 at 242.77; Select up 3.98 at 237.35/cwt.

Lean Hog futures also closed higher and are near the contract highs. Traders are anticipating an increasing effect of PEDv-reduced supplies.  July LH futures are at a premium to the CME LH Index.  Pork values increased today -- FOB Plant Pork up 2.28 to $129.76/cwt on much higher Rib values. Corn Jly -9 444; Dec -9 442 Bean Jly +9 1425; Sep +4 1267; Nov +2 1234 Meal Jly -3 456; Oct -4 396 Oil +55 4068 Wheat Jly -5 580; Dec -3 612 KC -7 714;  MGE -5 685 Oats -3 337 Rice -1 1462

LC Jun +60 14815; Oct +112 15027; Feb +95 15275 FC Aug +102 20790; Oct +112 20945; Mar +120 20305 LH Jly +42 12825; Oct +102 11075; Feb +65 9220 Milk Jun -1 2133; Jly +33 2188

US$ -.1%

Dow -10 16937 SP unch 1963 NAS +1 4369 Tran -43 8162 VIX +.13 10.98

WTI -82 10601 Brent -78 11403 Gas -2 311 NG -9 444 HO -1 304 Eth -1 207

Gold +2 1318 Slvr -6 2088

2-yr unch 0.468% 5-yr +.005 1.704% 10yr steady 2.626% 30yr unch 3.453%

Blue Grass Stockyards Cattle Auction Report for 06/23/2014

Receipts:  1253   Last Monday:  1192   Year Ago:  1006

Compared to last week steer and heifer calves sold steady with good demand on an average through good quality offering.  Feeder steers and heifers sold steady with good demand on an average to good quality offering.  Slaughter cows sold 2.00 to 4.00 higher with very good demand.  Slaughter bulls sold 5.00 higher with very good demand; few high dressing bulls 8.00 higher with exceptionally good demand.

Total supply included 06% slaughter cows, 02% slaughter bulls, less than 01% replacements and 92% feeders.  Feeder supply 39% steers, 21% bulls, 40% heifers with 55% of feeders weighing over 600 lbs.

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Tagged Post Topics Include: Economics, Market updates