Market Closes - May 7, 2019

Posted on May 7, 2019

Corn Jly +2 366; Dec +1 384 (381-85)

Bean Jly unch 831; Nov unch 853 (850-58)

  Meal -3 293

  Oil -3 2710

Wheat Jly +2 439 (431-42); Dec +1 462

  KC Jly +1 404; MGE +7 522

Oats +1 279

Rice +23 1093

 

LC Jun unch 11227; Oct +57 10945; Dec +42 11287

FC May +127 13730; Aug +125 14560; Oct +72 14720

LH May +67 8305; Jly -55 9212; Oct +62 8620

Milk May -3 1647; Jun -3 1659

The major CBOT contracts managed steady to slightly higher closes as traders recovered from Monday’s sharp losses caused by the US/China tariff squabble.  The news out late Monday that the top Chinese trade official is coming to the U.S. to participate in negotiations calmed some nerves. However, note that the U.S. equity markets closed sharply lower after Monday’s recovery from the sharp selloff; today’s SP500 close was near Monday’s low. The net effect for two days is that soybean futures and US equities are sharply lower than last Friday’s closing levels. Soybean futures still have a large down-gap from Monday’s trade. Corn futures closed its down-gap.  Traders will continue to watch weather and news from trade negotiations for direction. Expect continued uncertainty and price volatility. USDA has its monthly WASDE report out midday Friday.

Today’s 6-10 day and 8-14 day outlooks call for below normal temperatures and below normal rainfall for the Corn Belt. Maybe there is hope that the crop will get planted.  See MAPS here.

Cattle futures closed higher despite a weaker boxed beef market. Choice beef dropped 3.13 to 223.87 and Select fell 2.15 to 211.83. Today’s trading range was fairly narrow and within Monday’s very wide ranges. Cattle futures are technically oversold, so that encouraged buying.

Except for the June and July contracts, Lean Hogs closed moderately to strongly higher. The June and July LH traded around $4-4.5 lower in the first 15 minutes, then rallied to show gains midday, before closing slightly lower. These two contracts had a $6.00-plus trading range. Buyers were encouraged by continuation of the US/China trade negotiation this week. FOB Plant Pork jumped 2.78 to 85.67. Loins up 2.5%; ribs up 4%; hams up 4%; and bellies up 4 percent.

US$ steady

Dow -473 25965

SP -48 2884

NAS -160 7964

Tran -232 10670

  VIX +3.88 19.32

 

WTI -86 6151

Brent -136 6988

Gas -5 195

NG +1 254

HO -3 204

Eth +1 133

Gold +2 1286

Slvr unch 1493

2-yr -.025 2.284%

5-yr -.038 2.255%

10yr -.047 2.453%

30yr -.047 2.861%

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