Market Closes - May 12, 2014

Posted on May 12, 2014
CBOT wheat led the markets lower going into the 830 am e-trade opening on rainfall falling in dry areas.  However, the rest of the day saw wheat cut the losses as traders realized the rainfall may not be as widespread and beneficial as first thought.  Corn futures collapsed from 830 to 900 am and spent the rest of the day in a narrow sideways trading range.  Soybean futures were the strongest market overnight but slid lower throughout the day and ended sharply lower.   Corn and soy complex futures closed near the day’s lows. Wheat futures closed 12-15 cents above the lows. Given falling soybean futures, Central Illinois Processor basis is reported up 5-6 cents/bushel today as farmer selling will slow down.

CBOT price charts don’t look very good with double-tops and bearish reversals in a few contracts.  December Corn and July KC Wheat gapped lower today.

Today’s price action may indicate the large funds are continuing to liquidate their long old-crop soybean position.

Corn planting progress is 59 pct, faster than the 55 pct generally expected.

Corn Planting Progress .    5/11/14   5-yr average U.S.    59%        58% KY      64%        59%

Soybean Planting Progress U.S.     20%         21% KY       8%          13%

Winter Wheat Conditions – 18 States .        Good/Excellent  Poor/V.Poor This Week       30%           42% Last Week       31%           38% Last year       32%           39% Rated Poor/V.Poor: TX-68%, OK-75%, KS-56%, CO-38%

Spring Wheat: 34% planted vs 40% year ago and 53% on average.

U.S. Pasture: 41% good/excellent vs 34% year ago. 23% poor/v.poor vs 33% year ago.

Cattle futures closed slightly lower on a lack of market news.  A stable fed cattle market on Friday and firm boxed beef prices limited losses.  Choice carcasses up 0.56 at 223.82; Select up 0.43 at 212.64.

Lean Hog futures posted sizable losses in the nearby contracts on weakness in cash hog prices Friday and today.   The premium put in June LH futures on fears of lower slaughter numbers is evaporating as supplies continue to hold up.  On a positive note, FOB Plant Pork was up 2.09 to 113.82/cwt on higher prices for loin, rib and belly product.

Corn Jly -8 499 (498-506); Dec -7 492 (490-96) Bean Jly -22 1465 (1462-96); Sep -15 1270; Nov -14 1212 (1210-29) Meal Jly -9 478;  Oct -4 389 Oil -20 4098 Wheat Jly -7 715 (700-22); Dec -6 739 KC -4 824;  MGE  -4 791 Oats Jly +4 357 Rice -11 1532

LC Jun -40 13765; Oct unch 14245; Feb -10 14615 FC May +2 18460; Aug +50 19187; Oct +55 19260 LH May -125 11342; Jun -117 11900; Oct +70 10485 Milk May +3 2274; Jun -12 2111

US$ unch

Dow +112 16695 SP +18 1897 NAS +72 4144 Tran +148 7867 VIX -.69 12.23  -5.3%

WTI +62 10061 Brent +51 10840 Gas +2 292 NG -13 440 HO +1.5 292 Eth -2 214

Gold +8 1296 Slvr +42 1954

2-yr +.016 0.400% 5-yr +.039 1.665% 10yr +.038 2.660% 30yr +.030 3.495%

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Tagged Post Topics Include: Economics, Market updates