Market Closes - March 20, 2019

Posted on Mar 20, 2019

Corn May unch 371; Dec unch 395 (393-96)

Bean May +2 906; Nov +2 940 (934-41)

  Meal +1 312

  Oil +3 2927

Wheat May +8 465; Jly +7 470 (461-70)

   KC +8 444; MGE +6 571

Oats +1 274

Rice +16 1094

 

LC Apr +45 12957; Jun +65 12337; Aug +60 11932

FC Mar unch 14225; May +160 15212; Aug +195 15752

LH Apr +300 limit 7382; Jun +300 9025; Aug +300 9397

Milk Apr +12 1510; May +16 1531

 

CBOT futures were mostly steady except for strong gains in wheat futures. The wheat rally was tied to short-covering by the spec funds. Corn and wheat sold off the first hour of day-trade, but then rallied the rest of the day to close near the day’s highs.  Corn and beans, as well as other markets, were whipsawed by conflicting stories on the US/China trade negotiations. It seems we get positive and negative comments within hours. The latest is that US reps will go to China next week and Chinese trade reps will visit the US the following week. The end is not in sight.

Outside markets, including higher crude oil, were positive today with the US Dollar weakening as Treasury Yields fell sharply after the FOMC suggested it didn’t expect any interest rate increase in 2019. In December 2018, FOMC suggested 2 rate increases could occur. However, the FOMC also lowered its U.S. GDP growth forecast to 2.1 percent for 2019, down from 2.3 percent in December. It sees slowing economic growth in Europe and China which affect the U.S.

Cattle futures closed higher with Feeder Cattle for May19 and beyond leading the way. May FC hasn’t been this high since October; it’s about $3 below the contract high. Live Cattle were supported by the limit-up move in Lean Hogs and by the unfavorable feedlot conditions that’s limiting weight gains and beef production. Although boxed beef values rose yesterday, Choice fell today by .66 to 228.67 and Select fell .83 to 218.63.

Lean Hog futures closed up the daily trading limit of $3.00/cwt (the limit is $4.50 tomorrow). LH continue to be supported by bullish attitudes based on China’s need to increase pork imports due to it herd losses from ASF. Traders will study tomorrow’s Weekly Export Sales Report closely; last week’s pork sales were huge. The April LH contract finally exceeded its contract high set in November. FOB Plant Pork slipped .09 to 74.05.

US$-.4% 96.00

Dow -142 25746

SP -8 2824

NAS +5 7729

Tran -134 10143

  VIX +.35 13.91

 

WTI +94 6023

Brent +89 6850

Gas +2 192

NG -5 282

HO +2 201

Eth unch 141

Gold -5 1302

Slvr -5 1532

 

2-yr -.071 2.398%

5-yr -.098 2.326%

10yr -.088 2.524%

30yr -.056 2.970%

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