Market Closes - mostly lower: September 5, 2012

Posted on Sep 5, 2012
  Tuesday’s poor price action and the lack of bullish news kept the speculative funds taking profits today in CBOT futures.  The pressure from the selling pushed December Corn below initial support at $7.93 and the 40-day moving average.  The next support is 7.86.  November Soybeans are looking at good chart support at $17.01.  Closes near the day’s lows are negative for tomorrow’s trade.

  Adding to the selling momentum are weakening basis levels from harvest pressure and traders positioning ahead of next week’s USDA Crop Report and WASDE updates.

  Cattle futures closed mixed with narrow changes.  Market participants expect feedlot trade at prices about $1/cwt over last week’s price. Boxed beef has also been firming up -- Choice up 0.69 at 191.14; Select up 1.14 at 181.83.   However, LC futures are near chart resistance and are already at a premium to the current cash market price.  The December Live Cattle chart below shows resistance at $129.40 – this was also today’s high price. If this resistance breaks, DEC LC could trade to $131.50.

  Not impacting today’s markets was news that a Japanese panel of experts has recommended Japan allow beef from cattle under 30 months of age, an increase from the 20-month age limit today.  Additional Japanese government processes are required before this policy could be implemented.

  A very early morning rally in Lean Hog futures gave way to a sharp sell-off when the pit opened. The hog charts now have a negative look with today’s “bearish outside day down”.  Futures may be headed back to the August lows.  The Pork Cutout fell sharply today – losing 2.57 to $78.06.

 

Corn Dec -14 791 (789.5-806.5); May -12 791; Dec’13 unch 657

Bean Nov -21 1747.5 (1742.5-1770); May -10 1613; Nov’13 -5.5 1376

  Meal -9 525   Oil -25 5753

Wheat Dec -20 846; Jly -10 851.5 (851-863)    KC -20 887;  MGE -19 930

LC Oct +15 12632; Dec +37 12925; Apr -27 13607

FC Sep +5 14505; Nov +27 14855; Apr -57 15432

LH Oct -57 7362; Dec -57 7187; Feb -95 7905

Milk Sep -18 1879; Oct -13 1982

Oats -8 387

Rice -25 1492

US$ -.1%

Dow +12 13047

SP -1 1403

NAS -6 3069

Tran -57 4951

 VIX -.24 17.74

WTI +66 9596

Brent -50 11368

Gas +1 296.5

NG -6 279

HO -1.6 313

Eth -4.4 252

Gold -1 1693

Slvr -12 3224

2-yr +.004 0.238%

5-yr +.006 0.622%

10yr +.046 1.594%

30yr +.024 2.707%

 

Tagged Post Topics Include: Economics, Market updates