Market Closes - June 24, 2014

Posted on Jun 24, 2014
Corn futures traded lower early in the morning but gradually erased the losses during the rest of the trading day. Failure to break below key support at 4.35 probably led to short-covering. Traders are debating whether some areas of excessive rain will offset the yield gains in other areas. More heavy rain is expected in the northern Corn Belt.

July 4th this year falls on a Friday and thus will make a 3-day weekend. Major price moves often happen after 3-day weekends. Before that however, traders will deal with Monday’s Grain Stocks Report and the Acreage Report.

Wheat futures closed weakly at/near the day’s lows. Despite issues of vomitoxin in some U.S. wheat, the world has plenty of wheat and U.S. wheat is priced out of the export market. Wheat harvest is 33 pct complete. While Chicago set a new low for the move, KC and MGEX held above recent lows and making chart support very visible.

Cattle and hog futures closed sharply higher as traders are bullish given recent strength in beef and pork values and expectations of tightening supplies. Choice beef was up 0.89 at 243.66; Select up 0.99 at 238.34/cwt. FOB Plant Pork jumped 1.77 to 131.53 on strong loin and ham prices, while the picnic price fell four percent.

The USDA Quarterly Hogs and Pigs Report will be released Friday afternoon. The average trade guess is for marketing inventories at 97% of year ago and the breeding stock at 101.6 percent of year ago.

U.S. equity markets sold off in the afternoon as concerns about the Iraq situation and rising energy prices offset the morning’s positive economic reports for the U.S. With the SP500 just setting new record highs, there’s potential for a substantial correction.

Corn Jly -1 443; Dec -2 441 (437-43) Bean Jly -11 1413; Sep -7 1261; Nov -9 1224 (1218-32) Meal Jly -7 448; Oct -7 389 Oil +29 4097 Wheat Jly -9 571 (570-80); Dec -10 602 KC -8 705; MGE -9 676 Oats +3 339 Rice +16 1479

LC Jun +300 limit 15115; Aug +280 14972; Dec +222 15392 FC Aug +272 21062; Oct +290 21235; Mar +245 20550 LH Jly +212 13042; Oct +102 11177; Dec +95 9790 Milk Jun +2 2135; Jly +6 2194

US$ +.1%

Dow -119 16818 SP -13 1950 NAS -18 4350 Tran -69 8093 VIX +115 12.13 +10.5%

WTI -31 10586 Brent +19 11431 Gas +1 312 NG +8 452 HO +1 304 Eth -1 206 Gold +1 1319 Slvr unch 2091

2-yr -.004 0.460% 5-yr -.033 1.669% 10yr -.042 2.579% 30yr -.049 3.398% Blue Grass Stockyards Cattle Report for 06/24/2014 Receipts: 1036 Last Tuesday: 1509 Year Ago: 1571 Compared to Monday steer calves over 500 lbs sold steady to firm with good demand; under 500 lbs sold steady to weak in a light test. Quality was average to good. Heifer calves sold steady with very good demand. Slaughter cows and slaughter bulls sold steady to 1.00 lower with good demand. Total supply included 07% slaughter cows, 01% slaughter bulls, 0% replacements and 92% feeders. Feeder supply 56% steers, 09% bulls, 35% heifers with 59% of feeders weighing over 600 lbs.

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Tagged Post Topics Include: Economics, Market updates