Market Closes - March 7, 2017

Posted on Mar 8, 2017

CBOT futures closed lower led by the soy complex which is under pressure from the soy harvest in Brazil of a record crop (some estimates are rising). Soybean futures drifted sideways overnight but accelerated downward when trading resumed at 830 am. While corn and wheat managed to recover to mid-range closes, soybeans finished closer to the day’s lows. May Soybean Meal futures traded to a new 2-month low. Unfortunately, May Soybeans are barely above the 200-day moving average at 10.20. Below 10.20, support is 10.17 and 10.00. July has support at 10.24 and 10.10.  The spec funds remain very long in soybeans, meal and soyoil futures and this represents potential selling pressure. They are also long in corn and KC Wheat.  Wheat futures were supported by news of many large wildfires in Kansas which highlights the dry conditions wheat is facing; very little, if any, rain is forecast in the week ahead.

Cattle futures changed small amounts today as traders wait for more cash market direction. Some early sales were down $3-4 from last week. However, rising boxed beef values give the packers room to pay up. Choice carcasses closed up 2.40 at 212.00; Select up 1.09 at 205.05.  April Live Cattle have closed lower for 5 straight days.

Lean Hog futures closed moderately higher and near the day’s highs on a strong pork market and from the April LH discount to the CME Lean Hog Index. Compared to the midday quote of 83.34, FOB Plant Pork dropped .82 to 81.71 as bellies fell 7.72 to 137.39.

Corn May -2 376; Jly -2 383; Dec -2 396 (393-98)

Bean May -12 1025; Jly -11 1035; Nov -8 1013 (1010-26)

  Meal -2 331

  Oil -54 3373

Wheat May -2 456; Jly -1 471

  KC -1 472; MGE -3 539

Oats -5 240

Rice -5 952

LC Apr -20 11535; Jun -65 10562; Aug -60 10147

FC Mar -12 12395; May -30 12190; Aug -27 12407

LH Apr +87 6805; Jun +67 7742; Aug +85 7810

Milk Mar +6 1595; Apr +16 1599

US$ +.1%

Dow -30 20925

SP -7 2368

NAS -15 5834

Tran -103 9317

  VIX +.21 11.45

WTI -6 5314

Brent -39 5562

Gas +1 161

NG -8 282

HO +1 161

Eth -1 149

Gold -9 1216

Slvr -23 1749

2-yr +.021 1.330%

5-yr +.037 2.051%

10yr +.025 2.518%

30yr +.021 3.118%

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