Market Closes - March 5, 2013

Posted on Mar 5, 2013
CBOT futures closed higher. Early soybean strength from strong export sales eventually faded when the March Soybean contract traded above $15 but couldn’t close above it. Old-crop corn futures set the day’s highs soon after the pit opened and closed in the upper end of the trading range. On the other hand, the December Corn contract turned down midday and closed poorly. Wheat managed small gains but these seem minute compared to the huge losses in wheat futures over the past few weeks. Kansas and Nebraska are expected to receive quite a bit of moisture through early next week.

Despite another day of sharp gains in boxed beef values, cattle futures gave up early gains to close lower and form bearish reversals on the price charts. Fed cattle have not traded this week; feedlot offers are at $130 versus last week’s trade of $128/cwt. Choice UP 2.91 at 193.87; Select UP 3.44 at 191.52. Blue Grass cattle prices were generally lower than Monday’s market except for steer calves under 500 pounds (see market report below).

Lean Hog futures fell sharply in sympathy with cattle losses and from the Pork Cutout dropping $1.79 to $79.88/cwt. The April contract is still at a premium to the Cash Index. The April Lean Hog contract fell to a new contract low today. The weekly continuation chart has now charted a 50 percent retracement of the September-February rally of $18.00. $76.65 is the next support level.

While China’s housing news was bearish yesterday, the release of its economic blueprint contained some friendly news. China plans a temporary buying program to boost its reserves of corn, soybeans and cotton. It also indicated it will pursue economic growth over 7%.

Corn May +6 709; Jly +4 686; Dec +2 552 Bean May +4.5 1466; Jly +4 1448; Nov +6 1275   Meal May +2 436; Oct +6 363   Oil -13 5013 Wheat May +3 706; Jly +5 709; Dec +6 731   KC +7 745; MGE +3 796

LC Apr -72 12962; Jun -107 12447; Oct -70 12952 FC Mar -77 14175; Apr -112 14360; Aug -155 15300 LH Apr -105 7925; Jun -102 8955; Oct -87 8152 Milk Mar +12 1694; Apr +18 1736

Oats +4 389 Rice -20 1537

US$ -.2% Dow +126 14254 SP +15 1540 NAS +42 3224 Tran +92 6137   VIX -.53 13.48

WTI +74 9086 Brent +174 11183 Gas +5.5 315 NG -1 352 HO +7 299 Eth +2.6 244

Gold +2 1574 Slvr +18 2868

2-yr unch 0.24% 5-yr +.02 0.78% 10yr +.02 1.90% 30yr +.02 3.11%

CME GROUP ANNOUNCES NEW CBOT TRADING HOURS If CFTC approves, beginning April 8, electronic and floor trading hours for CBOT Corn, Soybeans, Wheat, Soybean Meal, Soybean Oil, Rough Rice, Oats, and KCBT Wheat futures and options will be amended as follows:    + Sunday to Friday, electronic trading from 7:00 p.m. to 7:45 a.m. CT    + Monday to Friday, break in electronic trading from 7:45 a.m. to 8:30 a.m. CT    + Monday to Friday, floor and CME Globex trading from 8:30 a.m. to 1:15 p.m. CT

Daily settlements will be based on market activity at or around 1:15 p.m. CT each day.    Mini-Sized Corn, Mini-Sized Soybeans and Mini-Sized Wheat will continue to trade on CME Globex and on the floor until 1:45 p.m. CT. 

Blue Grass Stockyards        Cattle Report for 03/05/2013 Receipts:  955   Last Tuesday:  710   Year Ago:  1,169     Compared to Monday, steer calves sold mixed under 500 lbs sold 2.00 higher with good demand; over 500 lbs sold 1.00 to 3.00 lower, except 600-700 lbs 5.00 lower with inactive farmer participation today compared to yesterday.  Yearling steers sold 1.00 to 3.00 lower with moderate demand.  Heifer calves under 600 lbs sold 5.00 higher with very good demand.  Slaughter cows and slaughter bulls sold steady with good demand.      Total supply included 06% slaughter cows, 01% slaughter bulls, less than 01% replacements and 93% feeders.  Feeder supply 59% steers, 05% bulls, 36% heifers with 80% of feeders weighing over 600 lbs.

 AMERICANS SPENDING LESS ON FOOD   This graphic produced by Business Week shows that American households spent 11.2 percent of post-tax income on food in 2011. This compares to 16.8 percent in 1984.   Click to see larger version.


Tagged Post Topics Include: Economics, Market updates