Market Closes - March 24, 2014

Posted on Mar 24, 2014
Corn futures were supported by this morning’s weekly export shipments report that showed last week’s corn exports were very strong. Surging ethanol prices also support corn futures. Poor weekly exports for soybeans weighed on the soy complex early, but the 2-3 percent gains in corn and wheat markets lifted soybeans and soybean meal futures. Old-crop soybean supplies will remain tight in the U.S.

Despite today’s sharp rallies in wheat, soybean and soybean meal futures, last week’s highs and the resulting potential “double top” chart formations in these same contracts were NOT violated.  See MAY Soybean Chart.  But wheat futures are close enough that it won’t take much more price strength to possibly hit buy-stops and see even higher prices. See May Wheat Chart.   Tonight’s NWS 6-10 and 8-14 day outlooks offer NO moisture relief for the southern Plains.   See MAPS Here.  The spec funds are building on their new wheat long position (and are very long corn and soybeans).

The next big risk day for CBOT futures is next Monday at noon Eastern when USDA releases its Prospective Plantings Report and the Quarterly Grain Stocks estimates.

Live Cattle futures traded both sides of unchanged but managed slightly higher closes after seeing box beef values firm up. At the end of day, Choice carcasses were up 0.96 at 241.12; Select carcasses up 2.27 at 235.93/cwt.  Friday’s Cattle on Feed Report was considered slightly bearish due to higher-than-expected placements. This high demand for feeder cattle may explain the dollar-plus gains in CME Feeder Cattle futures.

Lean Hog futures sold off sharply soon after the market opened at 9 am.  Last Friday’s Cold Storage report weighed on hog futures. Profit-taking and unwinding of bull-spreads resulted in heaviest losses in the June LH contract. June LH has closed lower for 4 straight days and has lost around $5/cwt from last week’s highs.  Friday afternoon, USDA will release its hog inventory numbers and give traders a measure of pig losses from PEDv.

Corn May +11 490 (478-91); Jly +11 494; Dec +8 488 (478-88) Bean May +17 1425 (1393-1433); Jly +16 1399; Nov +7 1184 (1168-86) Meal May +6 462; Oct +3 376 Oil -18 4084 Wheat May +21 714; Jly +21 717 (689-721) KC Jly +24 790;  MGE +20 759 Oats +2 417 Rice +9 1552

LC Apr +15 14415; Jun +30 13642; Oct +87 13840 FC Mar +167 17670 expires Thursday; Apr +102 17630; Aug +102 17892 LH Apr -102 12465; Jun -212 12820; Oct +97 10525 Milk Apr +51 2404; May +30 2204

US$ -.2%

Dow -26 16277 SP -9 1857 NAS -50 4226 Tran -5 7510 VIX +.09 15.09

WTI -1 9945 Brent -30 10662 Gas -2 289 NG -2 429 HO -1 291 Eth +14 299

Gold -27 1309 Slvr -32 1996

2-yr +.004 0.437% 5-yr +.02 1.73% 10yr -.02 2.73% 30yr -.05 3.56%

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Tagged Post Topics Include: Economics, Market updates