Market Closes - May 12, 2015

Posted on May 12, 2015
Following the USDA WASDE Report at Noon EDT, CBOT futures made some major moves. The most significant factors appear to have been the 2015/16 Ending Stocks estimate of 500 million bushels and a larger-than-expected World Ending Stocks estimate of 96.2 mmt for 2015/16. July Soybeans quickly dropped 13 cents and proceeded to trend lower the rest of the session to lose another dime. The November Soybean and July Soybean Meal contracts fell to new contract lows. Corn and wheat futures traded wide ranges but ended the day nearly unchanged. Analysts reported that traders were buying corn and wheat futures as they sold soybeans. Focus should now return to the rest of the planting season and how crops develop.

Live Cattle futures closed higher but feeder futures dropped significantly except for the nearby May contract. LC sold off early but rallied thereafter as the boxed beef market firmed up. Choice carcasses up 1.39 at 260.96; Select down 0.35 at 247.75. The June LC contract is now in a sideways trading range and is about $10.00 discount to the cash market.

Lean Hog futures closed moderately higher but near the day’s highs and at new highs for this move. Very strong pork markets and the bullish momentum supported LH futures. FOB Plant Pork closed up a sharp 2.67 to 83.67/cwt. Bellies jumped over 10 percent and ham’s rose four percent. The June LH contract has now retraced almost 50 percent of the $28.00 drop between November 2014 and late March 2015.

Treasury yields have been rising to 5 to 6-month highs but reversed today to close slightly lower. The higher yields weighed on US equities. The weaker US Dollar has been lifting energy futures.

Corn Jly unch 361; Dec unch 376 (372-80) Bean Jly -18 955; Nov -19 931 (930-55) Meal Jly -7 303; Oct -7 296 Oil -22 3297 Wheat Jly unch 480 (478-91); Dec unch 504 KC -1 508; MGE unch 536 Oats +7 243 Rice -16 944

LC Jun +122 15147; Oct +92 15077; Dec +62 15172 FC May +92 21770; Aug -97 21645; Oct -120 21465 LH May +60 8130; Jun +77 8505; Oct +87 7425 Milk May +1 1633; Jun -1 1704

 

US$ -.5% Dow -37 18068 SP -6 2099 NAS -17 4976 Tran -105 8650 VIX +.01 13.86

WTI +195 6120 Brent +225 6716 Gas +6 204 NG +9 289 HO +6 201 Eth -2 163 Gold +10 1193 Slvr +21 1651

2-yr -.012 0.604% 5-yr -.022 1.570% 10yr -.016 2.256% 30yr -.014 3.021% Lexington Auction (Tues) Weighted Average Report for 05/12/2015 Receipts: 1337 Last Week: 1307 Year Ago: 1223 Compared to yesterday steer and heifer calves sold mostly steady with good demand. Quality was average through attractive. Slaughter cows and slaughter bulls sold steady with good demand.

04 replacement cattle, 83 slaughter cattle, and 1250 feeder cattle. Today's supply included 65.6 percent that weighed over 600 lbs. 53.0 percent steers and 6.8 percent bull calves .9 percent Holstein Steers and 33.7 percent heifers of total recorded feeder supply. 74 head of slaughter cows with 92 percent going to slaughter. 09 head of slaughter bulls with 100 percent going to slaughter.

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Tagged Post Topics Include: Economics, Market updates