Market Closes - May 28, 2014

Posted on May 28, 2014
CBOT futures started the day on the weak side but strengthened throughout the day after the pit opened at 930 am CT.   Early weakness came from Tuesday’s sharp losses. Old-crop soybean contracts led the market up but new-crop soybeans lagged old-crop.  Gains in old-crop soybeans were limited by losses in soybean oil futures. Weather is favorable.

Cattle futures closed higher with sharp advances in Feeder Cattle futures. Strength came in short-covering after a week of lower prices and rising boxed beef values. Choice up 1.19 at 234.31 and Select up 1.50 at 224.15/cwt.

Lean hog futures fell sharply in the June/July/August contracts, pressured by cash’s discount to summer futures.  The June LH contract is nearly $7/cwt discount to the July LH.  The PEDv risk premium is coming out of the market as slaughter weights are making up for the reduced numbers.  The FOB Plant Pork cutout rose 2.36 to 115.25/cwt.

Treasury yields fell sharply today – hitting a 10-month low.  Bond buying was blamed on short-covering by those that have been betting on rising rates and by falling rates in other countries due to economic weakness.

Corn Jly +3 472; Dec +4 469 (463-70) Bean Jly +9 1498; Sep +3 1295; Nov +4 1243 (1231-48) Meal Jly +4 498; Oct +4 406 Oil -31 3963 Wheat Jly -2 639 (633-42); Dec -2 670 KC -2 736; MGE unch 718 Oats +10 350 Rice -4 1505

LC Jun +55 13615; Oct +65 14132; Feb +60 14675 FC Aug +207 19557; Oct +177 19665; Mar +135 18960 LH Jun -195 11455; Aug -202 12477; Dec -30 9500 Milk Jun -75 limit 2103; Jly -75 2057

US$ +.3%

Dow -42 16633 SP -2 1910 NAS -12 4225 Tran +58 8076 VIX +.17 11.68 +1.5%

WTI -106 10305 Brent -1 11001 Gas +1.5 301 NG +11 462 HO unch 294 Eth +3 235

Gold -7 1258 Slvr -3 1903

2-yr -.02 0.37% 5-yr -.05 1.48% 10yr -.07 2.445% 30yr -.07 3.29%

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Tagged Post Topics Include: Economics, Market updates