Market Closes - March 21, 2016

Posted on Mar 21, 2016
CBOT futures closed higher with corn ending near the day’s highs. Wheat moved higher Sunday evening when markets opened on concerns that some of the HRW wheat crop had been damaged by freezing temperatures. Corn and soybean futures traded lower overnight but rallied at the 830 am electronic opening as wheat futures rallied further. However, wheat futures eventually backed off to finish mid-range, but still higher on the day. Traders realized that it takes days to assess the freeze damage. Tonight’s crop condition report from Kansas said 20% of its wheat crop is jointed, compared to 7% for the 5-year average.

Thursday, March 24, is the last trading day for March Feeder Cattle futures and options and April serial options for CBOT corn, wheat and soy contracts. Futures markets are closed on Good Friday.

Cattle futures closed sharply lower, especially in the feeder contracts, adding to Friday’s big losses. Prices were pressured by Friday’s Cattle on Feed Report and falling box beef prices. Today, Choice ended down 2.01 at 229.80; Select down 1.66 at 220.67. This is much lower than the midday quotes of 231.19 and 223.20.

Lean Hog futures also fell sharply today, weighed down by the sharp losses in cattle futures. FOB Plant Pork gained .56 to 76.91. Until today, LH futures had maintained a positive-looking chart.

Treasury yields rose sharply following comments from Federal Reserve members suggesting rising inflation and a Fed Discount Rate increase could come in April. The equity markets were little changed.

Corn May +2 369; Jly +2 374; Dec +2 388 Bean May +4 902; Jly +4 908; Nov +4 913 Meal +2 269 Oil +16 3358 Wheat May +3 466; Jly +3 473 KC +5 475; MGE +3 512 Oats +3 191 Rice -7 1037

LC Apr -147 13835; Jun -125 12785; Oct -80 12132 FC Mar -85 16237; Apr -422 15797; Aug -345 15610 LH Apr -210 6935; Jun -205 8185; Aug -142 7992 Milk Apr +9 1397; May +12 1375

 

US$ +.3% Dow +22 17624 SP +2 2052 NAS +13 4809 Tran steady 8075 VIX -.14 13.88

WTI +47 3991 Brent +19 4139 Gas +3 146 NG -8 183 HO unch 124 Eth -3 139 Gold -10 1244 Slvr +4 1585

2-yr +.037 0.876% 5-yr +.046 1.381% 10yr +.048 1.919% 30yr +.048 2.722%

Kentucky Weekly Livestock Summary for the week of Mar 14-19 Mar 2016. Receipts This Week Last Week Last Year 23,382 26,637 26,465 Compared to last week, steer calves sold steady to 4.00 higher and heifers were steady to 3.00 higher. Demand was good to very good for a good supply of average to good quality cattle. Yearling steers and heifers sold 3.00 to 4.00 higher with moderate to good demand for an average to good quality offering. Slaughter Cows sold mostly steady to 2.00 lower and slaughter bulls mostly steady to 3.00 lower with moderate to good demand.

Supply consisted of 6 percent slaughter, 5 percent replacement, and 89 percent feeder cattle. In the feeder supply, steers made up approximately 43 percent and heifers approximately 40 percent. Steers and heifers over 600 lbs totaled approximately 48 percent.

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Tagged Post Topics Include: Economics, Market updates