Market Closes - October 21, 2014

Posted on Oct 21, 2014
CBOT futures closed strongly higher with 2+ pct gains in corn and soybeans with prices finishing near the day’s highs as the funds were buyers in all three major pits. Even with today’s strong price moves, corn and soybean futures closed below last week’s highs. The December Soybean Meal contract soared about 4 pct as demand for meal is reportedly very strong. While meal is lifting soybean futures, the soybean oil price is testing lows set in September. The soy complex is leading the market on apparent concern that planting is off to a slow start in Brazil amid marginal soil moisture conditions. July Chicago Wheat also moved to a new high for this rally off the September 30 low. July Wheat has 0.25-cent gap on the chart at $5.5725.

USDA to Launch New Farm Bill Program to Help Provide Relief to Farmers Affected by Severe Weather       2014 Farm Bill's APH Yield Exclusion to be Implemented for 2015 Spring Crops ** READ USDA News Release Here **

Cattle futures closed lower with big losses in Feeder Cattle magnified by rising corn prices. October and December Live Cattle futures moved to new contract highs around 9:45 am and then proceeded to drift lower into a midday low. Both contracts have a double-top appearance with chart support around $162.00. But fed cattle last sold for $167 or better so futures and cash are inline. Choice Beef closed unchanged from Monday at $249.84.

Lean Hog futures closed lower as the cash hog and pork market continued sliding lower. December LH hit a new low for this down move and is about $4.00 above key support of $84.50 on the weekly continuation chart.   FOB Plant Pork dropped 2.42 to 104.04 on weaker loin and picnic values. This drop isn’t as bad as the midday quote of 103.19.

Corn Dec +8 356; May +8 378; Dec15 +6 401 Bean Nov +20 964; May +18 987; Nov15 +14 976 Meal +13 343; May +7 322 OIL +6 3176 Wheat Dec +6 519; Jly +8 547 KC +1 602; MGE +2 569 Oats unch 351 Rice +5 1255

LC Oct -135 16655; Dec -97 16705; Apr -12 16465 FC Oct -180 23895; Nov -290 23392; Mar -275 22635 LH Dec -70 8845; Feb -32 8607; Apr +27 8725 Milk Oct -2 2397; Nov -3 2165

US$ +.4%

Dow +215 16615 SP +37 1941 NAS +103 4420 Tran +259 8486 VIX -2.49 16.08 -13.4%

WTI +58 8249 Brent +96 8636 Gas unch 220 NG +3 370 HO +3 251 Eth +2 177 Gold +5 1250 Slvr +15 1750

2-yr +.015 0.366% 5-yr +.036 1.433% 10yr +.044 2.227% 30yr +.041 3.000%

The CME Group announced new, lower daily price limits for grain and soybean contracts, effective November 3, 2014.  The daily limits are adjusted, if necessary, on May 1 and November 1 according to defined formulas measuring average prices.  Lower average prices mean lower daily price limits.  Read CME Report HERE.

    • Commodity Current Initial Price Limit New Initial Price Limit (Effective 11/3/2014) New Expanded Price Limit (Effective 11/3/2014)
      Corn $0.35/bushel $0.25/bushel $0.40/bushel
      Soybeans $1.00/bushel $0.70/bushel $1.05/bushel
      CBOT Wheat $0.45/bushel $0.35/bushel $0.55/bushel
      KC Wheat $0.50/bushel $0.40/bushel $0.60/bushel
      Soybean Oil $0.03/pound $0.025/pound $0.04/pound
      Soybean Meal $30/ton $25/ton $40/ton
      Oats $0.25/bushel $0.25/bushel $0.40/bushel
      Rough Rice $1.10/cwt $0.90/cwt $1.35/cwt
 

 

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Tagged Post Topics Include: Economics, Market updates