Market Closes - March 6, 2013

Posted on Mar 7, 2013
Corn and wheat futures closed sharply lower and at/near the day’s lows; losses worsened as the day went on. As stated at noon, the path of least resistance is down – traders aren’t willing to buy corn and wheat when exports are disappointing, the US dollar is strengthening and the 5-day forecast has significant moisture for the Plains and western Corn Belt. Spec funds probably dumped part of their long position today. Also weighing on corn futures was today’s EIA report showing last week’s ethanol production was down 1 percent from last week.

Cattle futures closed lower but well off the early-morning lows. Tuesday’s bearish chart reversal was confirmed today. A few cattle traded at $128/cwt today, even with last week’s sales. Traders had expected some improvement. Surprisingly, boxed beef values rose sharply again today.  Choice UP 2.21 at 196.08; Select UP 3.28 at 194.80. This week’s boxed beef gains are eating away at the negative packer margins which were reported at -$70.33 per head for last week, according to Sterling Beef Profit Tracker.

Lean hog futures moved sharply lower early in sympathy with cattle futures but staged a recovery. April Lean Hog futures have been trending lower since the end of January, so the market could correct higher any time. However, cash markets are not supportive yet. The Pork Cutout was down 0.47 to $79.41/cwt and futures are at a premium to the cash hog index. (Hog futures are trading up 70 cents in evening trade).

Corn May -20.5 688.5; Jly -14 672; Dec -8 544 Bean May -.5 1466; Jly +1 1449; Nov +3 1279   Meal May -1 435;  Oct -1 362   Oil +13 5026 Wheat May -22 684; Jly -21 689; Dec -20 712   KC -20.5 724.5;  MGE -12 783

LC Apr -82 12880; Jun -52 12395; Oct -62 12890 FC Mar -82 14092; Apr -135 14225; Aug -155 15145 LH Apr unch 7925; Jun -10 8945; Oct -72 8080 Milk Mar +5 1699; Apr +2 1738

Oats -4.5 384 Rice -3 1534

 US$ +.5% Dow +42 14296 SP +2 1541 NAS -2 3222 Tran -26 6111   VIX +.05 13.53

WTI -39 9043 Brent -69 11092 Gas -2.5 312.5 NG -6 347 HO unch 297.5 Eth -4 240

Gold unch 1575 Slvr +20 2880

2-yr +.01 0.25% 5-yr +.03 0.80% 10yr +.04 1.94% 30yr +.05 3.15%

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Tagged Post Topics Include: Economics, Market updates