Market Closes - October 1, 2014

Posted on Oct 1, 2014
CBOT futures closed with little change. Harvest progress will pressure the market. Transportation problems and storage shortages will play a part in markets. Falling energy prices are weighing on Ethanol price and appears to be reducing the corn grind for ethanol. Central Illinois Corn Processor basis dropped 3-5 cents today. The next Crop Production Report is out on October 10. A private firm raised its US crop production estimates (178.4 bu/ac Corn & 48.4 bu/ac Soybean) today and this may weigh on futures. The protests in Hong Kong may impact China and its demand for ag commodities if things worsen.

Cattle futures closed sharply higher with most Feeder Cattle futures contracts up the $3.00 limit. Bullish momentum and technical buying on new contract highs has scared off the sellers. Live Cattle prices are not keeping pace with Feeder Cattle prices and therefore the Feeding Margin is running in the RED – which price is “wrong”. The higher the price, more heifers may be held out of the beef supply and this will exaggerate the tight supply situation in 2015. Today’s beef market was less exciting than futures. Choice carcasses up 0.11 at 238.14; Select up 0.73 at 227.18/cwt.

Lean Hog futures closed mixed with the nearby lower and 2015 contracts higher. October LH futures are lagging the cash hog market as average weights begin to seasonally rise. Pork values also weakened. FOB Plant Pork closed down .18 to 121.80 – lower than the midday quote of 122.58/cwt.

US equity indexes dropped sharply on some weaker economic reports and global concerns (economics, ISIS, Ebola, China, etc). Investors moved to Treasuries so those yields (interest rate) dropped sharply. The key JOBS report comes out Friday morning. Crude Oil futures were up strongly until late morning but collapsed about $2/barrel by early afternoon.

Corn Dec unch 321; May +1 343; Dec15 +1 368 Bean Nov +3 917; May +4 942; Nov15 +5 942 Meal Oct +1 305; May unch 296 Oil +39 3266 Wheat Dec +1 479; Jly +4 509 KC unch 558; MGE -2 532 Oats +3 339 Rice -10 1264

LC Oct +202 16247; Feb +190 16587; Apr +127 16355 FC Oct +300 limit 23842; Nov +300 23805; Apr +300 22970 LH Oct -37 10760; Dec +35 9487; Apr +100 9167 Milk Oct -8 2398; Nov +14 2112

US$ -.1% 85.86

Dow -238 16805 SP -26 1946 NAS -71 4422 Tran -212 8239 -2.5% VIX +.40 16.71

WTI -41 9075 (high 9296) Brent -47 9420 (high 9623) Gas +1 245 (243-50) NG -9 403 (402-18) HO +1 266 Eth -6 153 Gold +2 1214 Slvr +11 1716

2-yr -.063 0.520% 5-yr -.107 1.673% 10yr -.119 2.389% 30yr -.113 3.097%

KENTUCKY CASH GRAIN PRICES Click Here 

KENTUCKY LIVESTOCK AUCTIONS --  Click Here 

Subscribe to “Between the Rows” e-newsletter from the KFB Commodity Division by Clicking Here.

Tagged Post Topics Include: Economics, Market updates