Market Closes - May 9, 2016

Posted on May 9, 2016

CBOT futures closed sharply lower on traders prepare for Tuesday’s crop production (wheat) and Supply-Demand updates. Carryout stocks estimates will remain very large. Futures were weighed down by a stronger US Dollar and lower crude oil futures.  U.S. corn and soybean planting progress remains well ahead of the 5-year average pace – but is slightly behind the year-ago rate. Winter Wheat’s condition is far better than last year’s crop on this date.  The Kansas Wheat Tour found better than expected yields. KC Wheat hit new contract lows.

Corn Planting Progress

.     5/8/16   5-yr average
U.S.   64%       50%  (69% last year)
KY     74%       51%  (53% last year)
(TN=89%, MO=94%, IN=38%)

Soybean Planting Progress
.     5/8/16   5-yr average
U.S.   23%       16%  (26% last year)
KY     15%       10%  ( 7% last year)

Winter Wheat Conditions – 18 States
.        Good/Excellent  Poor/V.Poor
This Week       62%           7%
Last Week       61%           7%
Last year       44%          20%

Cattle futures soared today following last week’s strong technical action after Live Cattle futures charted a double-bottom in late April. Some futures gapped higher today which is a bullish sign. Traders are optimistic on cattle prices with last week’s cash cattle trading up $2.00/cwt to $126.00, or higher, and remain at a premium to June LC futures. May FC have recovered 50% of the March-April drop of over $27.00/cwt. Choice Beef was up 1.60 at midday and closed up 3.83 at 207.57.

Lean Hog futures closed lower under pressure from the stronger US Dollar and futures premium to cash prices. The spec funds are long LH futures, so this selling is profit-taking.  Hog/pork fundamentals remain supportive as pork values jumped over one percent and packers are making good money.  FOB Plant Pork gained .95 to 82.60

Corn Jly -8 368; Dec -8 377 (hi 387)

Bean Jly -8 1026; Nov -6 1016 (hi 1030)

  Meal -3 340

  Oil -23 3283

Wheat Jly -7 456 (hi 467); Dec -6 486

  KC -7 446; MGE -5 530

Oats -3 189

Rice -19 1121

 

LC Jun +257 12330; Oct +145 11882; Dec +145 11832

FC May +342 15080; Aug +367 15085; Oct +345 14780

LH May -70 7610; Jly -102 8122; Oct -75 6955

Milk May -12 1275; Jun -37 1255
 

US$ +.3%

Dow -35 17706

SP +2 2059

NAS +14 4750

Tran unch 7739

VIX -.15 14.57

 

WTI -142 4324

Brent -185 4352

Gas -5 144

NG unch 210

HO -5 128

Eth -2 149

Gold -29 1265

Slvr -47 1706

 

2-yr -.028 0.710%

5-yr -.041 1.193%

10yr -.024 1.752%

30yr -.015 2.613%

 

Kentucky Weekly Livestock Summary for the week of May 2-7, 2016.

Receipts 
This Week    Last Week   Last Year
 16,709      16,259      20,179
  Compared to last week, steer and heifer calves sold mostly steady to 3.00 higher with moderate to good demand. Yearlings were unevenly steady with light demand. The markets were down a bit early but steadily improved throughout the week as the futures market showed positive movement.  Quality was attractive to good with moderate to good supply.  Slaughter cows and slaughter bulls sold mostly steady to firm with moderate to good demand and moderate supply.