Market Closes - March 7, 2014

Posted on Mar 7, 2014
CBOT futures closed mixed.  All grains traded higher through the night but sold off beginning early this morning, aided by a stronger US dollar on a good Jobs Report.   Late morning, the markets bounced higher. However, each commodity finished the day differently.  The key difference was a strong closing rally for soybean futures (MAY Soybean set new contract high), but a sell-off in corn futures in the final minutes of trading. Soybeans have very tight supply-demand conditions for support, but adequate corn supplies may have encouraged the large funds to take profits on this week’s huge rally. The CFTC report confirmed the funds had nearly doubled their corn long for the week ending Tuesday to over 158,000 contracts.

Traders were also positioning ahead of Monday morning’s USDA WASDE Report that will update foreign production estimates and global supply-demand forecasts. The average trade guess calls for a slight 10 million bushel increase in the US 2013-14 carryout for corn; a drop of 9 million bushels to 141 million bushels of soybeans; and an increase of 12 million bushels to 570 million for wheat.

Live Cattle futures had narrow trading ranges today and closed higher.  For the week, cattle closed higher but well off the highs set Wednesday.  Cash fed cattle sold a couple dollars/cwt lower this week in the $148-150 area.  Boxed beef has been rising in value with Choice carcasses up 0.44 at 236.02 and Select carcasses down 0.13 at 232.87/cwt.

Lean hog futures closed higher as the bullish momentum continues to persist. Cash hog prices continue to chase the April LH futures higher.  The CME Lean Hog Index is approaching $104/cwt. The FOB Plant Pork Cutout jumped 1.85 to 111.99/cwt.  The May, June and July LH contracts set new contract highs on fears that PED virus is cutting into the future hog supply. The Quarterly Hogs and Pigs report on March 28 will be big news and likely a market mover.

Both beef and pork production is estimated to be down from last week.

Corn May -2 489 (484-502); Jly -2 493;         Dec -4 485 (480-94) Bean May +20 1458 (1435-60); Jly +15 1425; Nov +1 1187 (1173-97) Meal May +7 458; Oct +2 365 Oil -17 4432 Wheat May +8 654; Jly +9 659 (648-66) KC +8 721;  MGE +10 705 Oats -20 446 Rice +2 1531

LC Apr +10 14325; Jun +40 13587; Oct +67 13735 FC Mar +97 17237; Apr +85 17365; Aug +65 17607 LH Apr +60 11300; Jun +115 12050; Oct +87 9760 Milk Mar +8 2268; Apr +6 2127

US$ +.1%

DOW +31 16453 SP +1 1878 NAS -16 4336 Tran +32 7592 VIX -.10 14.11

WTI +112 10268 Brent +69 10879 Gas +3 297 NG -4 462 HO +2 300 Eth unch 228

Gold -11 1340 Slvr -67 2087

2-yr +.02 0.37% 5-yr +.07 1.64% 10yr +.05 2.79% 30yr +.03 3.72%

Kentucky Weekly Livestock Summary for February 28-March 6, 2014 Receipts This Week   Last Week    Last Year 7,837       26,141       14,633

Compared to last week:  Steers Calves sold steady to 2.00 higher and Heifer Calves 2.00 to 3.00 higher.  Feeder Steers and Heifers were steady.  Demand was very good for all classes.  Snow, sleet, and freezing rain blanketed the state on Sunday and into Monday causing the cancelation of more than half of the auctions this week and severely limiting the movement of cattle to those that did operate.  By Thursday, welcomed sunshine and warmer temperatures helped bring the flow of cattle back toward normal.  Slaughter Cows sold 2.00 to 3.00 higher and Bulls steady to 2.00 higher.  Demand was very good.

Supply:  Slaughter Cows 12 percent; Slaughter Bulls 1 percent; Feeder cattle 84 percent.  In the feeder supply, Steers made up approximately 44 percent and Heifers approximately 35 percent.  Steers and Heifers over 600 lbs totaled approximately 48 percent.  Replacement cattle 3 percent.

KENTUCKY CASH GRAIN PRICES Click Here 

KENTUCKY LIVESTOCK AUCTIONS --  Click Here

Tagged Post Topics Include: Economics, Market updates