Market Closes - May 17, 2016

Posted on May 17, 2016

CBOT futures closed higher with a big jump in soybean and soymeal futures. Strong commercial demand for soybean meal along with aggressive buying from the speculative funds is fueling this rally. Trade reports mention that the funds may have a near-record large LONG position in soybean futures. The question is whether the eventual fundamentals will support their “bet”. After a 4-day slide in soybeans, today’s big rally moved prices much closer to last Tuesday’s highs (reaction to USDA report). This chart resistance level should be closely watched for signs of much more upside potential. Corn futures have charged higher ever since the May 10 reports and are well above the 200-day moving average. The key chart resistance is at the April 21 highs -- $4.07 in July Corn.

Cattle futures closed higher like yesterday with the best gains coming in Feeder Cattle futures. A strong boxed beef market and good packer margins were supportive. Choice up 2.93 at 225.33; Select 1-3 up 3.06 at 211.60.

Lean hog futures closed little changed today. The seasonal factor going into summer is a positive. But summer futures are already about $6/cwt over the current CME LH Index, so this limits LH gains. FOB Plant Pork closed down .23 at 83.40.

US equity indexes dropped and interest rates rose in response to investors sensing increased odds of the FOMC raising their key rate after today’s economic reports. Other economists disagreed.  All are awaiting the Fed minutes to be released tomorrow.  

Corn Jly +3 397; Dec +4 404 (398-404)

Bean Jly +16 1080; Nov +12 1067 (1052-72)

  Meal +8 369

  Oil -1 3278

Wheat Jly +7 482 (473-84); Dec +7 506

  KC +4 458; MGE +2 539

Oats unch 196

Rice +18 1211

 

LC Jun +30 12332; Oct +32 11922; Dec +30 11835

FC May +87 14952; Aug +105 14877; Oct +117 14505

LH Jun -27 8275; Aug +12 8265; Oct +22 7067

Milk May +1 1275; Jun +1 1238


US$ steady

Dow -181 17530

SP -19 2047

NAS -60 4516

Tran +45 7608

VIX +.89  15.57  +6%

 

WTI +59 4831

Brent +50 4957

Gas +3 163

NG +2 205

HO +3 147

Eth +2 159

Gold +3 1277

Slvr +10 1725

 

2-yr +.041 0.827%

5-yr +.028 1.290%

10yr +.011 1.764%

30yr -.006 2.592%