Market Closes - May 17, 2013

Posted on May 17, 2013
The concern over old-crop supplies of corn and soybeans in the U.S. drove market action today as active bull-spreading (buy nearby/sell deferred contracts) resulted in sharp gains for July futures. However, wheat futures have disconnected from the corn market as world wheat supplies are likely to be plentiful and harvest is just weeks away.

The latest CFTC report shows the funds had added to LONG positions in corn and soybean futures through Tuesday.  And have probably added to longs the rest of this week.

The U.S. Dollar Index has now surged to its highest level since mid-2010, surpassing the last high in mid-2012. This makes U.S. commodities more expensive for our export customers.

CME Cattle futures closed lower and near the day’s lows as traders booked profits ahead of this afternoon’s USDA Cattle on Feed Report. The COF came in fairly close to expectations and shouldn’t be a deciding factor for next week’s trade.  Rather consumer demand for beef at the new record high CHOICE BEEF CUTOUT values will decide what packers are willing to pay the feedlots.  This week’s trade was down slightly from last week.   The CFTC report showed the funds had liquidated some of their cattle long positions as of Tuesday.  More liquidation probably occurred the rest of the week.

Lean Hog futures closed lower, with bigger losses in the June and July contracts. After a strong week in cash hog, pork and futures prices, it wasn’t surprising to see a setback to end the week.

 

Corn Jly +11 653 (638-656); Sep +2 556; Dec -4.5 519.5 Bean Jly +21 1448.5 (1424-1449); Sep +18 1289; Nov +11 1228 Meal Jly +10 425; Dec +5 346.5 Oil unch 4952 Wheat Jly -4.5 683; Dec -5.5 707.5; Jly’14 -5 734 KC -6 737;  MGE unch 804 Oats -2 375 Rice -4 1523

LC Jun -50 11940; Aug -117 11855; Dec -75 12352 FC May -112 13390; Aug -175 14337; Oct -142 14780 LH Jun -135 9152; Aug -75 9015; Oct -25 8030 Milk May +1 1852; Jun -9 1836

US$ +.5% Dow +121 15354 SP +17 1667 NAS +34 3499 Tran +81 6549 VIX -.62 12.45

WTI +86 9602 Brent +12 10380 Gas +2.5 291 NG +12 405.5 HO +3 294 Eth +4 267

Gold -22 1365 Slvr -31 2235

2-yr +.01 0.24% 5-yr +.04 0.83% 10yr +.07 1.95% 30yr +.07 3.17%

United States Cattle on Feed Down 3 Percent

Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.7 million head on May 1, 2013. The inventory was 3 percent below May 1, 2012.

Placements in feedlots during April totaled 1.75 million, 15 percent above 2012. Net placements were 1.68 million head. During April, placements of cattle and calves weighing less than 600 pounds were 375,000, 600-699 pounds were 270,000, 700-799 pounds were 455,000, and 800 pounds and greater were 650,000.

Marketings of fed cattle during April totaled 1.86 million, 2 percent above 2012. 

KENTUCKY CASH GRAIN BIDS Click Here

Tagged Post Topics Include: Economics, Market updates