Market Closes - March 28, 2013

Posted on Mar 28, 2013
CBOT futures fell sharply in response to the bearish USDA Grain Stocks Report.  Feeder Cattle futures closed limit UP on lower feed costs and higher live cattle futures.

 Most traders were not prepared for what USDA had to say today about the amount of grain and soybean stocks in the U.S. on March 1. The extra 390 million bushels of corn knocked old-crop corn futures down the 40-cent limit, and options implied a 60-cent drop. The CBOT opens at 5:00 pm CDT on Sunday after being closed for Good Friday. The expanded limit Sunday is 60-cents.

Acreage estimates were pretty much in line with trade expectations. However, the bearish Stocks report overshadowed everything else today.   ACTUAL USDA estimates appear in ( ). Prospective Plantings Corn Planted = 97.3 million (97.3) Soybean Planted = 78.4 million (77.1) Wheat planted = 56.4 million (56.4)   March 1, 2013 Grain Stocks Corn = 5.01 billion (5.40) - bearish Bean = 0.935 billion (1.00) - bearish Wheat = 1.18 billion (1.23)

Live Cattle futures rallied on news that fed cattle finally sold for higher money. Cash sales were reported at $127 in TX and $128-129 in KS, a gain of $2-4/cwt from last week.   Boxed beef did not share in the good news; Choice DN 0.89 at 189.07; Select UP 0.33 at 188.84.

Lean Hog futures closed slightly higher on spillover support from the much higher cattle futures. However, this afternoon’s Hog report looks somewhat bearish for futures since the number of market hogs were nearly one percent more than the average trade estimate. However, if spring weather arrives and consumption goes up, price might be supported.

 Hogs and Pigs All hogs & pigs = 100.7% of year ago (101.5) Kept for breeding= 100.3% (100.2) Kept for marketing= 100.8% (101.6)- negative Dec-Feb Pig Crop = 101.2% (101.6)

U.S. equities hit new record highs. The S&P 500 increased 0.4 percent to 1,569.19 at the close, above its closing high of 1,565.15 from Oct. 9, 2007. The Dow Jones Industrial Average climbed 52.38 points, or 0.4 percent, to 14,578.54, reaching another record.

Corn May -40 limit 695; Jly -40 limit 676; Dec -32.5 538.5 Bean May -49 1405 (low 1397); Jly -45.5 1385.5; Nov -27 1251.5   Meal May -18.5 404.6; Oct -10 348   Oil -71 5011 Wheat May -49 688; Jly -45 691 (low 686)   KC -47 727; MGE -33 780 Oats -16 396 Rice +3 1536

LC Apr +155 12890; Jun +140 12437; Oct +137 12952 FC Apr +300 limit 14340; May +300 14507; Aug +300 15225 LH Apr +52 8060; Jun +40 9107; Oct +2 8190 Milk Apr -19 1728; May -3 1839

 US$ -.3% Dow +52 14579 SP +6 1569 NAS +11 3268 Tran +62 6255   VIX -.45 12.70

WTI +63 9721 Brent +33 11002 Gas -1 310 NG -4.5 402 HO unch 291 Eth -13 245  Reacted to limit down corn futures

Gold -11 1595 Slvr -29 2832

2-yr unch 0.24% 5-yr +.03 0.76% 10yr unch 1.85% 30yr +.01 3.10%

UK Ag Economics newsletter: Economic and Policy Update is available • Farm Market and On-Farm Market Patron Profiles: 2012 Regional Survey Summary – Tim Woods and Shang-Ho Yang • On Farm Solar Energy Production – Jennifer Rogers • Stocker and Backgrounding Outlook for 2013 – Kenny Burdine & Greg Halich   To read, click on http://www.ca.uky.edu/agecon/index.php?p=209

“2012 Drought and Its Impact on Worldwide Grain" Webinar by Elwynn Taylor on March 27.   You may find this recorded webinar on GrainNet of interest.  The address is: http://www.grainnet.com/webinar_archives/EywynnTaylorDrought2012.wmv

The link to presentation slides: http://www.grainnet.com/pdf/GEAPS20130327.pdf

Blue Grass Stockyards Cattle Weekly Summary Report for the week ending 03/27/13    Receipts:  1,490   Last Week:  1,635   Year Ago:  3,359 **Receipts include 404 head sold in special cow sale Wed. night.

   Compared to last week, steer calves sold steady to 1.00 higher with light demand, yearling steers firm with light to moderate demand. Heifer calves sold steady to 2.00 higher with light moderate demand.  Slaughter cows sold steady with good demand. Slaughter bulls sold steady to 2.00 lower with moderate demand. Cold, wet conditions have slowed spring grass and muddy conditions restricted cattle movement this week.

   Total supply included 09% slaughter cows, 02% slaughter bulls, 26% replacements and 64% feeders.  Feeder supply 33% steers, 18% bulls, 49% heifers with 55% of feeders weighing over 600 lbs. 

KENTUCKY CASH GRAIN BIDS Click Here

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