Market Closes - March 26, 2020

Posted on Mar 26, 2020

Corn May unch 349; Jly +1 354; Dec unch 367 (364-68)

Bean May -1 880; Jly unch 885; Nov +1 879 (870-81)

  Meal +1 323

  Oil -14 2650

Wheat May -11 569; Jly -11 556 (554-68); Dec -10 561

   KC -14 487; MGE -6 531

Oats -5 261

Rice +14 1377

 

LC Apr -300 limit 10545; Jun -277 9355; Oct -260 9802

FC Mar -127 13080; Apr -362 12510; Aug -350 13160

LH Apr -295 6290; Jun -300 limit 6875; Aug -300 limit 6945

Milk Apr -24 1570; May -33 1456

Again today, CBOT futures closed widely mixed with corn and soybeans near steady, while wheat contracts ended significantly lower. Corn and soybeans tested lower levels but climbed back to end near steady. This morning’s export sales report was neutral for corn, but better than expected for soybeans and wheat. Wheat however closed lower on profit-taking after the recent sharp rise. Falling crude oil futures weighed on the market, while a weaker US Dollar should have been supportive. Ethanol futures actually closed up 6 cents/gallon today. But this comes after a 50 cent fall from five weeks ago.

Cattle futures closed sharply lower with some live cattle contracts down the $3.00 limit (will be $4.50 tomorrow). Cattle futures were pressured by yesterday’s and today’s weaker boxed beef values. There’s also reports that feedlots were selling cattle dollars/cwt lower than yesterday’s $120/cwt. This morning’s record large increase in job losses, although not unexpected, reminded traders that consumer demand could weaken in the weeks ahead. There’s always the danger of packing plants being closed due to infected workers. Choice beef fell 1.73 to 253.57 and Select slipped .92 to 242.17. Fresh 50% lean trimmings averaged 43.62 cents/lb. USDA reported that beef export sales were up 11.5% from the same week a year ago.

Lean Hog futures also closed sharply lower to as much as limit down. LH were pressured by weakening pork cutouts and ideas that hog supplies (at rising weights) are becoming burdensome. Today’s export sales report was very strong but didn’t help the LH futures market. FOB Plant Pork dropped 1.42 to 77.61. Strength in values of loins and butts couldn’t offset large losses in the values of bellies, hams, ribs and picnics. Belly value fell 10%. Bacon consumption depends on food service which is severely limited.

After the close, USDA released the Quarterly Hogs and Pigs Report. The market hog inventory is 4% larger than a year ago, but the breeding inventory is only slightly greater. The winter pig crop was up 5% year/year with a 2% increase in farrowings and a record high number of pigs saved per litter at 11.0.

 

US$ -1.5% 99.44

Dow +1352 22552

SP +155 2630

NAS +413 7798

Tran +320 8045

  VIX -2.95  61.00

 

WTI -189 2260

Brent -105 2634

Gas unch 54

NG -2 164

HO -5 105

Eth +6 97

Gold +18 1651

Slvr -20 1468

 

2-yr -.027 0.299%

5-yr -.015 0.527%

10yr -.008 0.848%

30yr +.018 1.439%

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