Market Closes - May 13, 2020

Posted on May 13, 2020

Corn Jly -4 318 (318-22); Dec -3 332 (332-36)

Bean Jly -12 839 (836-54); Nov -11 845 (843-58)

  Meal -1 291 (290-93)

  Oil -35 2591

Wheat Jly -13 502 (500-14); Dec -11 516

  KC -15 454; MGE -13 508

Oats +1 305

Rice +19 1565

 

LC Jun -330 9387; Oct -267 10150; Dec -265 10455

FC May -200 12530; Aug -267 13307; Oct -260 13555

LH May -2 6800; Jun -345 5787; Oct -202 5305

Milk May +22 1195; Jun +75 1535; Jly +71 1601

Be sure to see info at the end regarding USDA’s webinar on the Coronavirus Food Assistance Program (CFAP).

CBOT futures mostly closed lower to sharply lower as traders seemed to reassess yesterday’s USDA supply-demand estimates. Yesterday, futures closed narrowly mixed after the WASDE. With trend yields, 2020 crops will create large supplies of corn and wheat into 2021. How well ethanol production recovers will make a big difference for the corn ending stocks. Wheat supplies in the U.S. and the world will be burdensome. The U.S. 19/20 ending stocks are projected record large. July Chicago Wheat traded a new low for the current downtrend and hitting prices not seen since March 18. Soybean futures closed lower despite an improving supply-demand balance from 2019/20 to 2020/21 and another reported export sale to China. However, soybean exports to China are only tracking year-ago levels and far short of what is needed. Therefore, USDA cut 19/20 exports by 100 million bushels and raised the 19/20 carryout by 100 million bushels (which surprised traders). According to the NWS, our below-normal temperatures should be behind us for the next two weeks, so crops should get growing.

Cattle futures closed sharply lower and near the day’s lows. Early strength in the June LC gave way after 90 minutes of trading. LC and FC then trended lower into the close. Several contracts traded inside Tuesday’s trading ranges. LC futures were pressured by prices nearing the late-March high and being in overbought territory, improving slaughter levels and bearish economic comments from the Federal Reserve Chair Powell. Cash trade has been light but firmer, with live at $110-117 (avg $114) and dressed trade at $170-185/cwt (avg $179 steers). Boxed beef was higher at midday, but fell off by the afternoon. Choice beef dropped 9.40 to 465.99 and Select fell 13.73 to 437.24.

Lean hog futures also closed sharply lower, adding to the short-term downtrend started a week ago. The packers are getting more hogs processed than last week – up over 20% - but 20% below the year-ago pace. FOB Plant Pork gained 4.39 to 117.21, recovering over half of Tuesday’s drop in the cutout. All cuts were higher. Ham value rose 6.70 to 43.15, about where ham was on Monday. Belly value collapsed yesterday from 219 to 158; today it is 160.51. The trend in loin value is still up – rising 7.20 to 162.19; five days ago it was 140.58.

US$ +.2%  100.21

Dow -517 23248

SP -50 2820

NAS -139 8863

Tran -177 7824

  VIX +2.24 35.28

 

WTI -49 2529

Brent -79 2919

Gas -7 85

NG -10 162

HO -1 83

Eth +1 112

Gold +10 1716

Slvr -4 1567

 

2-yr -.010 0.163%

5-yr -.017 0.318%

10yr -.040 0.652%

30yr -.042 1.340%

 

The United States Department of Agriculture (USDA) will host a webinar on Thursday, May 14 at 1:00 p.m. EDT for farmers interested in applying for direct support through the Coronavirus Food Assistance Program (CFAP).  Last month USDA Secretary Perdue announced the creation of this new program to assist farmers in response to the negative impacts of the coronavirus (COVID-19) pandemic on commodity prices and food supply chains. 

While we await final details on the program and for the official sign-up period to be announced, this webinar will serve as an opportunity to learn about the expected application process and required documentation.  You may register for the webinar at the following link: https://www.zoomgov.com/webinar/register/WN_SPWI7yOFSqaGG1JKzhEbjA.


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