Market Closes - March 31, 2016

Posted on Mar 31, 2016

CBOT futures closed mixed – to the extreme – all in response to the midday USDA Prospective Plantings Report. Corn futures crashed by over 4% following USDA saying 2016 acreage will be 93.6 million versus the average trade guess of about 90 million (the highest guess was 91.0). The funds reportedly sold a huge amount of corn futures (they were already short). Corn futures erased the month-long rally and fell to new life-of-contract lows.

Wheat futures jumped 2% on USDA’s wheat acreage estimate of 49.56 million versus the average guess of 51.70 million. Despite wheat’s rally today, the closing prices remain below Tuesday’s closing prices (although MGEX wheat did close above the previous highs set in March). Huge wheat stocks should limit the rally, but weather will now be the focus.

Soybean futures ended up little changed as the quarterly stocks estimate and the soybean acreage forecast were both slightly friendly. Also soybean oil futures resumed its rally and hit new highs.

Live Cattle futures closed higher and Feeder Cattle futures soared the $4.50 daily limit, thanks to the crashing corn futures. Some fed cattle traded as low as $133/cwt, or $3 below last week’s trade. Choice beef closed down .88 at 220.99 and Select is down 2.20 at 210.48.

Lean Hog futures traded both sides of unchanged but closed lower, adding to Wednesday’s losses. Futures were weighed by weak cash hog and pork prices. FOB Plant Pork dropped 1.54 to 76.05.

Corn May -15 351; JLy -16 356; Dec -15 369 (low 365) Bean May +2 911; Jly +2 918; Nov +2 925 Meal -2 270 Oil +43 3422 Wheat May +9 473; Jly +9 481 KC +10 476; MGE +14 529 Oats unch 185 Rice -34 969

LC Apr +57 13292; Jun +95 12402; Oct +135 FC all limit UP $4.50. Apr 15707; Aug 15507; Oct 15180 LH Apr -57 6835; Jun -70 8085; Oct -35 6892 Milk Apr +3 1379; May +13 1400

 

US$ -.2% Dow -32 17685 SP -4 2060 NAS +1 4870 Tran -21 7944 VIX +.39 13.95

WTI -20 3812 Brent +34 3960 Gas -2 144 NG -3 196 HO +1 118 Eth -3 143 Gold +6 1233 Slvr +24 1545

2-yr -.040 0.725% 5-yr -.063 1.206% 10yr -.060 1.770% 30yr -.045 2.612%

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Tagged Post Topics Include: Economics, Market updates