Market Closes - March 12, 2019

Posted on Mar 12, 2019

Corn May +4 366; Dec +5 391 (387-92)

Bean May +7 897; Nov +7 932 (923-35)

  Meal +2 303

  Oil +35 2999

Wheat May +24 453; Jly +24 461 (436-64)

  KC +22 443; MGE +14 561

Oats +5 268

Rice +2 1073

 

LC Apr -235 12665; Jun -157 11867; Aug -117 11547

FC Mar -100 14130; May -130 14610; Aug -97 15152

LH Apr +80 6365; Jun +30 8025; Aug +67 8315

Milk Apr +10 1490; May +8 1515

Traders wasted no time today rallying the grain and oilseed markets with Chicago and KC Wheat leading the way higher. The rally accelerated when trading reopened at 830 am CT and kept rising throughout the day; futures  backed off from the highs in the last few minutes of trading. Today’s rally was technical in nature with strong short-covering apparent. I noted yesterday that the spec funds had huge short positions. The US Trade Representative testified in Congress today and may have instilled confidence that a China trade deal will eventually come. Today’s price action made positive chart formations; however, confirmation and follow-through are necessary.

Cattle futures closed lower with the nearby April LC contract down sharply. Futures were pushed down by long liquidation by the spec funds who are holding a huge long position. The lack of strength in the spot fed market probably pierced traders’ confidence. As futures fell through key chart support (last week’s lows and the 50-day moving average), it prompted additional selling; this left the closing prices near the day’s lows. Feeder futures received a 1-2 punch as LC fell and CBOT futures rose.  Choice beef was up .86 to 228.22 and Select gained .72 to 220.35.

Lean Hog futures closed higher, but by much less than seen the previous two trading days. LH set its daily lows in the first 15 minutes of trading and then trended higher the rest of the day. LH futures were supported by higher pork values, bullish momentum and ongoing concerns about China’s hog herd (potential import pork demand). FOB Plant Pork closed up 1.20 at 67.62 with hams up 8 percent.

 

US$ steady

Dow -96 25555

SP +8 2792

NAS +33 7591

Tran -51 10262

  VIX -.56 13.77 

 

WTI +8 5720

Brent +9 6667

Gas -1 1182

NG +1 278

HO -1 199

Eth +2 131

Gold +7 1298

Slvr +14 1541

 

2-yr -.026 2.451%

5-yr -.035 2.405%

10yr -.041 2.600%

30yr -.043 2.989%

  Treasury yields fell as the U.S. Consumer Price Index rose only 0.2 percent in February.  The Yr/Yr increase of 1.5 percent was below expectations and is the smallest increase since 2016.

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