Market Closes - May 21, 2013

Posted on May 21, 2013
 

The past week’s fast progress in planting of corn and soybeans gave the bears more comfort.  Real demand for cash supplies appears to be stronger for soybeans than corn.

CBOT futures, except new-crop soybeans, rallied throughout the morning with closes near the highs of the daytime pit trade. With little new fundamentals to direct the market, money flow from the speculative funds could be the driver short-term.  The funds are now long corn and soybean futures.  The bull spreads have been working for them, but they will soon have to liquidate the July positions and most likely roll the longs to deferred contracts, maybe November and December.

In KY, cash soybeans are $3.00 to 3.50/bushel higher than new-crop delivery prices.  If you own cash soybeans, be careful to not lose this huge premium.

KENTUCKY CASH GRAIN BIDS – Click Here

Live Cattle and Feeder Cattle futures closed sharply higher, extending the rally off of recent lows to two days. Prices were supported by continued strength in CHOICE beef, profitable packer margins, and June LC futures’ discount to the cash market. Boxed Beef: Choice carcasses up 0.41 at 210.66; Select carcasses down 0.44 at 192.97/cwt.

Lean Hog futures managed small gains, supported by the sharp cattle futures rally and a firmer Pork Cutout value. June and July futures remain in the middle of the very wide trading range posted last Friday.

Treasury yields weakened slightly after comments from two Federal Reserve Presidents lessened traders’ concerns the Fed will signal its quantitative easing program should be tapered (reduced from $85 billion). Fed Chairman Bernanke testifies in Congress tomorrow.

Corn Jly -9.5 640; Sep -8 547; Dec unch 520 (512-521.5) Bean Jly +14 1478; Sep -6 1288; Nov -4 1221 (1214-1228) Meal Jly +3.4 439; Oct -3 346 Oil +28 4948 Wheat Jly -5 680.5 (674-684.5); Dec -5 703.5 KC -6.5 738.5; MGE +2 813.5 Oats -8 355 Rice +.5 1518

LC Jun +97 12110; Oct +100 12347; Dec +130 12520 FC May -62 13190; Aug +200 14647; Oct +197 15072 LH Jun +32 9240; Aug +25 9060; Oct +47 8155 Milk May unch 1851; Jun -27 1802

US$ steady Dow +52 15388 SP +3 1669 NAS +6 3502 Tran +8 6519 VIX +.35 13.37

WTI -959598 Brent -117 10363 Gas -7 283.5 NG +10 419 HO -3 292 Eth -3.5 263

Gold -10 1374 Slvr -21 2237

2-yr unch 0.23% 5-yr -.02 0.82% 10yr -.04 1.92% 30yr -.05 3.13%

Blue Grass Stockyards Cattle Report for 05/21/2013 Receipts:      1,232 Last Tuesday:  1,276 Year Ago:      1,504 Compared to Monday, steer calves sold 3.00 to 5.00 higher with good demand as cattle futures rallied today.  Mostly good quality offering today.  Heifer calves sold mostly steady to 2.00 higher on 600-700 lbs with moderate to good demand on an average to good quality offering.  Yearling steers sold steady with good demand.  Yearling heifers no comparison.  Slaughter cows sold steady with good demand.  Slaughter bulls sold 1.00 higher with good demand.

Total supply included 08% slaughter cows, 02% slaughter bulls, less than 01% replacements and 90% feeders.  Feeder supply 61% steers, 11% bulls, 28% heifers with 67% of feeders weighing over 600 lbs.

Broiler-Type Chicks Hatched Down Slightly    Broiler-type chicks hatched during April 2013 totaled 748 million, down slightly from April 2012. Eggs in incubators totaled 622 million on May 1, 2013, up slightly from a year earlier. Leading breeders placed 6.22 million broiler-type pullet chicks for future domestic hatchery supply flocks during April 2013, down 5 percent from April 2012.

Tagged Post Topics Include: Economics, Market updates