Market Closes - March 23, 2021

Posted on Mar 23, 2021

Corn May +2 551 (548-56); Jly +3 534; Dec +2 470 (465-72)

Bean May +6 1423 (1414-35); Jly +7 1411; Nov +7 1223 (1215-31)

  Meal May +2 399 (396-403)

  Oil May +65 5702; Jly +7 5382

Wheat May +7 635; Jly +7 626 (612-33); Dec +4 630

  KC +4 582; MGE +4 630

Oats +10 378

Rice unch 1321

 

LC Apr +35 11912; Jun +112 12005; Aug +97 11910

FC Mar +37 13545; May +37 14547; Aug +37 15557

LH Apr +142 9647; Jun +177 10125; Aug +125 9960

Milk Apr -11 1671; May -8 1748

CBOT futures were nearly all higher at the close, recovering from Monday’s weakness. May soybean oil hit a new contract high, supported by the palm oil market. The spec funds were buyers in corn, wheat and the soy complex.  CBOT and livestock futures managed to overcome the bearish outside markets – higher US Dollar, lower energy futures, stocks and precious metals. Crude oil fell sharply on concerns that Europe will see more COVID restrictions and slow vaccine administration. Grain and soy fundamentals haven’t changed. South America has a slow soybean harvest with export shipments backed up; the safrinha corn crop was planted late (86% complete vs 96% normal), subjecting it to warmer, drier conditions that should lower yields. Chinese demand for U.S. corn was strong last week but it’s been quiet so far this week. U.S.-China relations may be tested after the U.S. put sanctions on two officials.

Traders are positioning for the March 31st planting and stocks reports by USDA. Traders are also trying to assess this summer’s weather possibilities given the drought conditions in the NW corn belt. The TX/LA/MS corn crop is being planted faster than the 5-year average.

Cattle futures closed higher, adding to Monday’s gains; some contracts pushed above last Thursday’s closes. Live cattle futures overcame the negative Cold Storage report from Monday that showed record high beef stocks for any February month-end estimate. Sharply higher boxed beef values lifted the market as traders anticipate this may be the week of higher cash cattle prices. Choice beef popped 3.04 to 233.99 and Select gained 2.18 to 225.23 with movement heavy at 143 loads. Cash fed trade was inactive as would be expected early week.

Lean hog futures closed strongly higher, supported by sharply higher cash hog prices and pork cutouts. April LH set another contract high. The June & July LH are firmly above the $100 mark. If China isn’t buying much more grain/soy, then maybe they are locking up more U.S. pork. FOB Plant Pork closed up 2.52 at 105.78, well short of the morning quote of 109.55. The difference was mainly the result of big changes in the value of hams and bellies. Belly value was up 21.09 at 201.28 in the morning and up 14.63 in the afternoon. Ham value was up 12.86 at 93.39 in the morning and only up 2.60 this afternoon. Pork movement was very strong at 362 loads.

 

US$ +.60% 92.34

Dow -308 32423

SP -30 3911

NAS -150 13228

Tran -262 13906

  VIX +1.80 20.68

 

WTI -380 5776

Brent -426 6036

Gas -6 190

NG -7 251

HO -8 175

Eth unch 177

Gold -13 1725

Slvr -54 2523 

 

2-yr -.002 0.147%

5-yr -.044 0.814%

10yr -.063 1.619%

30yr -.055 2.327%

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