Market Closes - November 24, 2014

Posted on Nov 24, 2014
The major CBOT futures contracts closed lower with corn and wheat near the day’s lows. Soybeans ended about mid-range with a late rally. The holiday week could be impacting trading along with the approaching delivery period on December contracts. The December Oats contract was slammed as traders liquidated long positions. This morning’s export inspections report was disappointing for corn but continues to confirm the strong demand for soybeans – primarily by China. It does appear that the very strong demand for cash soybean meal is easing slightly but huge crush margins encourage maximum production. Improved moisture conditions in Brazil and a near-normal planting progress around 75% are weighing on the market.

U.S. CORN harvest progress is 94%, compared to 94% last year and 92% on average. U.S. SOYBEAN harvest is 97% done, compared to 95% a year ago and 98% on average.

Cattle futures closed sharply lower with feeder cattle futures dropping the $3.00 daily limit. Live Cattle moved to new contract highs and then sold off beginning mid-morning. It appears that profit-taking kicked in and then accelerated when last week’s lows were penetrated. Friday’s Cattle on Feed Report showed more cattle inventory than expected. So far there’s no indication from the cash cattle and beef markets that prices should head lower. Choice ended up 0.48 at 255.70; Select carcasses are up 0.32 at 242.25.

Lean Hog futures closed mostly higher but at/near the day’s lows. LH futures gapped higher at the 9 am opening and never traded below the low set in the first few minutes of trade. Friday’s Cold Storage report showed a strong drawdown of frozen pork stocks during October. Pork Cutout values were near steady today.

Corn Dec -5 367 (365-73); May -5 389; Dec15 -5 411 Bean Jan -5 1034 (1027-39); May -6 1046; Nov -8 1010 Meal Dec -3 375; May -5 343 Oil +51 3320 Wheat Dec -5 542; Jly -3 563 (562-69) KC unch 604; mGE -4 579 Oats -21 305 (due to approaching delivery period for December futures) Rice -15 1244

LC Dec -140 16950; Feb -212 17002; Jun -132 16147 FC Jan -300 limit 23335; Mar -300 23145; Aug -300 23200 LH Dec +67 9132; Feb +5 9050; Jun +45 9915 Milk Dec -36 1856; Jan +6 1741

US$ -.2%

Dow +8 17818 SP +6 2069 NAS +42 4755 Tran +72 9167 VIX -.28 12.62 -2.2%

WTI -88 7563 Brent -90 7946 Gas -2 203 NG -11 415 HO -1 239 Eth +2 208 Gold unch 1198 Slvr +6 1645

2-yr -.008 0.497% 5-yr -.011 1.601% 10yr -.010 2.305% 30yr -.003 3.017%

Blue Grass Stockyards Cattle Auction Report for 11/24/2014 Receipts: 928 Last Monday: 1151 Year Ago: 1043 Compared to last week steer calves under 700 lbs sold 2.00 to 5.00 higher except some lightweights under 500 lbs sold 10.00 to 20.00 higher with very good demand especially for weaned calves in short supply; over 700 lbs sold steady in a light test. Heifer calves under 600 lbs sold 2.00 to 5.00 higher with very good demand especially for weaned offerings in short supply; however fleshy heifers over 600 lbs sold steady to weak with light to moderate demand. Quality was average through good. Yearling steers and heifers lightly tested. Slaughter cows sold 1.00 to 2.00 higher with good demand. Slaughter bulls sold steady in a light test with good demand. Total supply included 15% slaughter cows, 02% slaughter bulls, 01% replacements and 82% feeders. Feeder supply 30% steers, 32% bulls, 38% heifers with 34% of feeders weighing over 600 lbs.

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Tagged Post Topics Include: Economics, Market updates