Market Closes - March 13, 2013

Posted on Mar 13, 2013
Old-crop soybean futures closed sharply lower – pressure came from the stronger US dollar, last Friday’s WASDE report, the recent slowdown in exports and anticipation of the huge South American crop getting shipped. GULF Export Basis dropped 4-5 cents/bushel today. The price action is creating a negative technical perspective which could inspire more selling including the important spec fund liquidation.

Corn futures closed lower under pressure from the soybean pit. Also weighing on corn futures was news that ethanol production is down one percent from last week and more wheat is making it into feed rations and ethanol production. MAY Corn is trading between the 20-day moving average below ($6.98) and the 200-day M/A above ($7.21). Maybe after the MARCH contract expires tomorrow, the MAY contract can move up toward the $7.40 area.

Avoiding Red Ink, CBOT wheat futures closed higher with the MAY contract up for the 5th straight day, settling about 30 cents above last week’s low. The MAY contract has strong chart support at $6.79-6.81 – the lows posted in June 2012 and March 2013. Wheat futures were supported by signs more wheat is replacing corn in feed rations. Also GULF Export Basis improved 3-5 cents/bushel.

Live Cattle futures closed lower after giving up the morning gains. Trader optimism for higher beef and cash cattle prices dissipated midday when packers bid $125 compared to last week’s trade near $128/cwt. Boxed beef only gained 21-30 cents today.

Lean Hog futures closed lower from Tuesday’s drop in the Pork Cutout and lack of fundamental news to support futures that had already bounced off last week’s lows.

USDA announced it will furlough all meat inspectors on the same days, for a total of 11 days (not consecutively), beginning in mid-July.

 Corn May -4 710 (700-718); Jly -1.5 692; Dec -2 555 (548-559) Bean May -22 1447 (1440-1469); Jly -21 1425; Nov -7 1262.5 (1256-1271) Meal May -7 429; Oct -2357   Oil -46 4952 Wheat May +6.5 710; Jly +4.5 708 (697-710); Dec +3 727   KC +3 738; MGE +4 795

LC Apr -15 12855; Jun -42 12345; Oct -50 12885 FC Mar +20 13900; Apr +52 14272; Aug +62 15185 LH Apr -80 8065; Jun -97 9007; Oct -80 8202 Milk Mar -8 1691; Apr -9 1698

Oats -2 392 Rice -45 1478

US$ +.4% Dow +5 14455   Up 9 straight days; first time since 1996. SP +2 1555 NAS +3 3245 Tran +100 6233   VIX -.44 11.83

WTI -2 9252 Brent -124 10841 Gas -1 314 NG +3.5 368 HO -2.4 292.4 Eth +5 258

Gold -3 1588 Slvr -21 2896

2-yr unch 0.26% 5-yr +.01 0.88% 10yr +.01 2.02% 30yr +.01 3.22%

NASS Suspends Certain Statistical Estimates and Reports Due to Sequestration     Issued March 12, 2013 by U.S. Dept of Agriculture, National Agricultural Statistics Service. http://www.nass.usda.gov/Newsroom/Notices/03_12_2013.asp

 KENTUCKY CASH GRAIN BIDS Click Here

Tagged Post Topics Include: Economics, Market updates