Market Closes - May 5, 2020

Posted on May 5, 2020

Corn Jly +1 317; Dec unch 334 (332-35)

Bean Jly +3 839; Nov +1 846 (843-48)

  Meal +1 289 (286-90)

  Oil +16 2631

Wheat Jly +1 521 (512-23); Dec +2 532

  KC -3 484; MGE +2 510

Oats +3 296

Rice +1 1473

 

LC Jun -160 8647; Oct -65 9652; Dec -40 10120

FC May +52 11960; Aug -72 12825; Oct -2 13062

LH May -157 6615; Jly -250 6292; Oct -272 5742

Milk May +4 1154; Jun +58 1352; Jly +44 1478

CBOT futures closed mostly higher by small amounts. Trading ranges were narrower than recently seen. Support came from sharply higher energy futures, a soybean export sale to China, and reduced tensions between the US and China regarding COVID. On the charts, it looks like corn and soybeans have formed wedge patterns (lower highs) that will lead to either breaking key chart support, or breaking the downtrend. We need to see last week’s highs exceeded to improve the outlook. July soybean meal is only $4.00 above its contract low.  

Cattle futures closed mixed with the 2020 contracts mostly lower. While boxed beef values are sky-high, there’s no correlation to that in the cash fed cattle market, so LC futures are limited in their response. Traders are apparently avoiding overhead technical levels.  Cash trade is still lightly established at $95/cwt live and $145-170 carcass (avg $153). Choice beef continued its record run with Choice up 18.94 to 428.99 and Select up 34.05 to 410.71. Slaughter so far this week is up 8% from last week, which leaves it terribly short. (some Wendy’s are reportedly out of burgers – “Where’s the beef?”) March beef exports totaled 267 million pounds and Jan-March exports were 769 million pounds – both record highs.

Lean hog futures closed sharply lower and generally within 50 cents of the day’s lows. LH was pressured by technical selling in an overbought market. Week-to-date hog slaughter is similar to last week. FOB Plant Pork gained 5.77 to 113.58, thanks to a 14% gain in bellies and a 13% gain in butt value; ham value dropped over 8%. Pork exports were also record large in March and for the Jan-March quarter.

Milk futures closed higher for the second straight day with the June Milk contract $3.00/cwt above its April lows.

US$ +.3% 99.84

Dow +133 23883

SP +26 2868

NAS +98 8809

Tran +66 8047

  VIX -2.36  33.61

 

WTI +489 2528

Brent +444 3164

Gas +9 92

NG +9 208

HO +10 90

Eth +5 106

Gold +1 1714

Slvr +32 1511

 

2-yr +.008 0.190%

5-yr +.017 0.375%

10yr +.025 0.662%

30yr +.037 1.334%

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