Market Closes - November 12, 2015

Posted on Nov 12, 2015
CBOT futures closed steady to higher in relatively narrow-range trading. The major contracts remain above the lows set on Tuesday with the bearish USDA reports which show grain and soybean supplies are more than abundant into 2016. Soybeans were lifted by announcement of export sales to China. But these sales are mostly expected. Some positive news for corn came in ethanol production. EIA reported weekly production was up 1.3 pct from the previous week and up 3.8 pct over a year earlier. However, less ethanol was blended into gasoline.

The technical buying from oversold conditions pushed cattle futures higher again today. Ideas that cash cattle will trade higher than last week supported LC futures and in turn, FC futures. Boxed beef values fell sharply for the second day even as LC futures rallied.

Lean Hog futures closed mostly higher on short-covering and spillover support from cattle futures. The December LH contract sold off into the 1:00 pm CT close. Cash hog prices were near steady but the pork cutout was higher. FOB Plant Pork closed up 1.32 at 76.17 with sharp increases for picnics and bellies. This cutout was up 2.18 at midday.

Outside market influence was mostly negative as the US equity markets and energy futures fell sharply (crude inventories grew MUCH more than expected). Supportive was a weakening of the US Dollar even as US Treasury yields edged up. A 14-pct increase in the VIX shows the rising risk and uncertainty in the financial markets.

Corn Dec unch 362 (359-63); Jly unch 381; Dec16 unch 392 Bean Jan +2 863 (855-65); Jly +4 874; Nov +4 879 Meal -3 291 Oil +26 2744 Wheat Dec +3 498; Jly +2 504 (499-505) KC unch 464; MGE +3 505 Oats -5 230 Rice +47 1211

LC Dec +182 13315 (13115-13510); Feb +190 13522; Apr +162 13495 FC Nov +52 17537 (17387-17800); Jan +82 16690; Apr -47 16580 LH Dec -7 5610; Feb +117 5825; Apr +72 6357 Milk Nov -4 1541; Dec -3 1513

 

US$ -.45% Dow -254 17448 SP -29 2046 NAS -62 5005 Tran -128 8060 VIX +2.31 18.37 +14.4%

WTI -128 4165 Lowest price since August; low then was 37.75. Brent -169 4412 Gas -5 128 NG +3 229 HO -4 141 Eth -1 149 Gold -1 1084 Slvr unch 1426

2-yr +.017 0.879% 5-yr +.012 1.714% 10yr +.002 2.315% 30yr -.002 3.092%

Lexington, KY - Blue Grass Stockyards Cattle Weekly Summary Report for the week ending 11/10/15 Receipts: 2,629 Last Week: 5,276 Year Ago: 3,259 Compared to last week steer calves under 600 lbs sold 5.00 to 10.00 lower; over 600 lbs sold sharply lower and yearlings sold 10.00 lower with light demand. Heifer calves sold sharply lower with very light demand. Quality was average through attractive. Market sluggish due to CME cattle futures downward pattern early week. Slaughter cows and slaughter bulls sold steady to 2.00 lower with light demand.

Tagged Post Topics Include: Economics, Market updates