Market Closes - March 6, 2015

Posted on Mar 6, 2015
CBOT futures closed narrowly mixed. Futures were weighed on by the soaring US Dollar (hit a new 13-year high) which depressed the other outside commodity markets like energy and precious metals. US equity indexes fell sharply as traders fear the Federal Reserve may prepare to begin raising interest rates in June.

Other factors hitting the CBOT were lower ethanol prices and improved export logistics in Brazil. A strong performance in soybean meal futures fueled a late-day rally in soybean futures to close unchanged. Wheat futures closed mixed but failed to add to Thursday’s losses when new contract lows were set Chicago and KC wheat contracts. Traders are short Chicago wheat and will be cautious until Corn futures can fall below the sideways trading range corn has been in for weeks. The March WASDE report on Tuesday will update the market on supply, demand and carryout forecasts.

Cattle futures traded both sides of unchanged but rallied strongly after mid-morning and closed on the day’s highs. Indications of a stronger cash fat cattle market encouraged the buying. Late-day reports indicate $162/cwt has traded which is up $3-4/cwt over last week’s average. Note that April LC remains at a sharp discount to cash. Surprisingly, boxed beef values finished the day weaker -- Choice down 0.72 at 248.48; Select carcasses down 2.19 at 244.39. Feeder Cattle futures rocketed higher with the March FC contract now $14.00 above the late-February low below $196 and back at prices last seen on January 15.

Lean Hog futures closed moderately lower on weaker cash hog prices, the stronger US Dollar and technical selling related to yesterday’s bearish reversals. FOB Plant Pork closed up .55 to 68.82/cwt on stronger ham and loin prices.

Corn May -4 386; Jly -4 394; Dec -3 411 (408-13) Bean May unch 985; Jly unch 990; Nov -1 965 (957-68) Meal May +3 328; Oct +2 319 Oil -29 3114 Wheat May +2 482; Jly -1 486 (484-90) KC +5 522; MGE -2 556 Oats -3 283 Rice -12 1047

LC Apr +137 15465; Jun +107 14710; Oct +42 14767 FC Mar +315 20972; May +277 20745; Aug +220 20912 LH Apr -70 6612; Jun -35 8005; Oct -47 7012 Milk Mar -4 1541; Apr +3 1545

US$ +1.3%

Dow -279 17857 -1.5% SP -30 2071 -1.4% NAS -55 4927 -1.1% Tran -96 8907 VIX +1.16 15.20 +8.3%

WTI -115 4961 Brent -64 5984 Gas -1 188 NG +1 285 HO -1 187 Eth -5 147 Gold -32 1164 Slvr -26 1587

2-yr +.084 0.727% 5-yr +.128 1.700% 10yr +.137 2.247% (bottomed at 1.68% on Feb 2) 30yr +.132 2.846%

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Tagged Post Topics Include: Economics, Market updates