Market Closes - March 26, 2013

Posted on Mar 26, 2013
For the most part, this week’s trading is about positioning ahead of Thursday’s USDA reports on planting intentions and grain stocks; they will be released at 11 am Thursday and the CBOT/CME is closed on Good Friday. However, concerns about some HRW wheat being damaged by weekend frost helped push the KC contract higher.

The CME will raise the margin requirement on corn futures tomorrow. The new margins are $2700 initial/spec and $2000 maintenance/hedge which is up from $2025/$1500 respectively.

The weak boxed beef market continues to weigh on cattle futures. The 3-day weekend for Easter will not help. Choice down 0.15 at 190.43; Select down 1.04 at 189.17.

Lean Hog futures closed higher in follow-through buying from Monday. Strong cash hog markets were supportive, but the pork market didn’t get the “memo” -- today’s Pork Cutout is down .37 to $77.59/cwt. Maybe hog traders are more willing to bet on the spring grilling season arriving soon. April futures are about a nickel above cash hog prices so something has to give pretty soon.

Stocks rallied strongly today despite a drop in Consumer Confidence. The Conference Board’s index dropped to 59.7 from February’s revised 68.0; economists expected a reading of 67.5. Sales of new homes also fell 4.6 percent. However, Durable Goods Orders jumped 5.7 percent, the most since September 2012. The SP500 Index came within a point of its record, while the Dow Jones Index hit a new record high.

Corn May -3 730; Jly -3 712; Dec -1 571 Bean May +10 1448; Jly +9 1426; Nov +7.5 1276.5 Meal May +2 420; Oct +1.5 357   Oil +38 5082 Wheat May +4 731; Jly +3 732   KC +9 768; MGE unch 810 Oats -1 400 Rice +7 1499

LC Apr -50 12595; Jun -32 12115; Oct -30 12687 FC Mar +12 13485; Apr +20 13860; Aug -37 14780 LH Apr +102 7950; Jun +30 9107; Oct +65 8225 Milk Apr +6 1742; May +13 1825 

US$ steady Dow +112 14560 SP +12 1564 NAS +17 3252 Tran +48 6182   VIX -.97 12.77

WTI +153 9634 Brent +118 10935 Gas +5 311 NG +11.5 398 HO -1 287 Eth unch 254

Gold -9 1596 Slvr -14 2868

2-yr unch 0.25% 5-yr -.01 0.77% 10yr -.01 1.91% 30yr -.01 3.14%   Blue Grass Stockyards Cattle Report for 03/26/2013 Receipts:    449   Last Tuesday:  763   Year Ago:  1,535    Compared to Monday, steer and heifer calves sold about steady in a very light test with light demand to moderate demand.  Yearling steers firm in a limited comparison.  Yearling heifers no comparison.  Slaughter cows and slaughter bulls sold steady in a light test.     Total supply included 09% slaughter cows, less than 01% slaughter bulls, less than 01% replacements and 90% feeders.  Feeder supply 39% steers, 11% bulls, 50% heifers with 70% of feeders weighing over 600 lbs.

 MONSANTO AND DuPONT SETTLE CLAIMS    Monsanto will dismiss its claim that DuPont infringed patents for Roundup Ready soybeans, setting aside a $1 billion jury award, and DuPont will dismiss its claim that Monsanto uses monopoly power to stifle innovation, the companies said in a joint statement. The world’s largest seed companies also agreed to enter into licensing agreements for making genetically modified crops.

KENTUCKY CASH GRAIN BIDS Click Here

Tagged Post Topics Include: Economics, Market updates