Market Closes - March 17, 2020

Posted on Mar 17, 2020

Corn May -11 344; Jly -8 350; Dec -4 362 (361-68)

Bean May +2 824; Jly unch 831; Nov -2 843 (842-54)

  Meal +2 298

  oil +25 2524

Wheat May +1 499; Jly unch 500 (496-507); Dec unch 516

  KC +8 432; MGE unch 509

Oats -6 253

rice +33 1395 

 

LC Apr +450 limit 9635; Aug +450 8957; Dec +332 9787

FC Mar +505 11355; May +187 11185; Aug +265 11932

LH Apr +450 limit 5847; Jun +362 7042; Aug +432 7205

Milk Apr -1 1599; May -17 1542 

CBOT futures closed widely mixed with corn and oats down sharply. Corn was pressured by realization that cheap crude oil/gasoline is hurting ethanol demand (some ethanol plants are closing due to negative margins). The speculators have been short corn for some time, but a large firm recommended its clients add more short corn positions. All corn futures hit new contract lows. After a sharp drop yesterday, soybean futures managed a narrowly mixed close. Beans were supported somewhat by slightly smaller South American crop forecasts. A very strong crush in February with strong meal demand encouraged buying.  Also, less ethanol means less DDGS to compete with soybean meal. Wheat closed mostly steady, except for KC Wheat, which added 7-8 cents. Wheat overcame the strong surge in the value of the US Dollar. The specs are barely short in wheat, compared to big shorts in corn and soybean futures. Rice, another food grain, rose nearly three percent. 

Cattle futures closed strongly higher to limit-up in front LC futures. Before today, LC futures had fallen in 7 of the last 8 trading days. Cattle futures rallied on short-covering as boxed beef values have soared yesterday and today. The public is hoarding beef for a potentially long stay at home (restaurants closed due to Covid-19). Choice boxes rose 15.57 today to 239.93 and Select gained 12.61 to 229.32. Packer margins are reportedly over $300/head. 

Lean Hog futures also rebounded from Monday’s sharp losses, some as much as the $4.50 limit to new contract lows. Strong equity markets and new economic stimulus created the short-covering. FOB Plant Pork ended up 1.04 to 74.42. Loins rose over 8 percent, but bellies fell over 6 percent. 

U.S. government plans to get money to all Americans and assist businesses lifted the stock market and U.S. treasury yields.

 

US$ +1.49 99.55 

Dow +1049 21237

SP +143 2529

NAS +430 7335

Tran +445 7468

  VIX -6.78 75.91 

 

WTI -175 2695

brent -132 2873

gas +2 71

NG -9 173

HO -1 104

eth -4 103

gold +39 1526

slvr -32 1249

 

2-yr +.139 0.499%

5-yr +.245 0.737%

10yr +.341 1.069

30yr +.382 1.706%