Market Closes - October 27, 2015

Posted on Oct 27, 2015
CBOT futures closed mixed and generally in opposite direction of Monday’s price moves. Other than relatively steady soybean export sales, there’s little to get CBOT prices going up, although slow farmer sales does help. The corn and soybean harvests are progressing ahead of schedule and both crops are huge. On Monday, wheat futures rocketed higher on short-covering (funds have a large short position); dry weather/soils in various countries offer limited support. In the first report of the season, U.S. winter wheat is rated 47% good/excellent, down from 59% a year ago.

In cattle futures, there’s two sides of the coin, so to speak. Cattle posted huge losses when the CME contracts settled at 1:00 pm CDT, but then staged $2.00 rallies by the 4:00 pm end of trading. Choice Beef gained .89 to 217.95 and Select rose 1.38 to 211.07. Cattle futures, as well as Lean Hog futures and stock prices of meat companies, have been pressured this week by the World Health Organization’s claim that red meat, especially processed red meat, increases the risk of human cancer.

Lean Hogs closed strongly lower at 1 pm and extended the losses in the afternoon. This makes for 4 straight down days in the December LH contract; the loss exceeds $7.00/cwt since a week ago (a good case for hedging and/or PUT options). FOB Plant Pork dropped .93 to 84.43 with all cuts but the loin seeing lower prices.

Corn Dec -4 380; Jly -3 401; Dec16 -2 406 Bean Nov +6 891; Jly +7 903; Nov16 +5 892 Meal +2 305 Oil +11 2789 Wheat Dec unch 509; Jly -1 520 KC -4 488; MGE -5 516 Oats -1 227 Rice -5 1160

LC Oct -287 13667; Dec -140 14060; Apr -140 14132 FC Oct -107 19260; Jan -297 18015; Apr -227 17815 LH Dec -160 6125; Feb -110 6470; Apr -60 6902 Milk Nov +1 1552; Dec -1 1557

 

US$ +.1% Dow -42 17581 SP -5 2066 NAS -5 5030 Tran -219 8064 VIX +.14 15.43

WTI -78 4320 Brent -50 4704 Gas unch 128 NG +1 236 HO unch 145 Eth -2 158 Gold unch 1166 Slvr -4 1586

2-yr -.020 0.621% 5-yr -.036 1.362% 10yr -.025 2.033% 30yr -.011 2.856%

Lexington Auction (Tues) Weighted Average Report for 10/27/2015 Receipts: 890 Last Week: 972 Year Ago: 1764 Compared to yesterday steers and heifers sold mostly steady with moderate to good demand. Yearling steers sold steady to weak with moderate demand. Quality was average through attractive. Slaughter cows and slaughter bulls sold about steady with moderate demand.

11 replacement cattle, 62 slaughter cattle, and 817 feeder cattle. Today's supply included 57.7 percent that weighed over 600 lbs. 49.7 percent steers and 15.2 percent bull calves 1.1 percent Holstein Steers and 27.7 percent heifers of total recorded feeder supply. 58 head of slaughter cows with 95 percent going to slaughter. 04 head of slaughter bulls with 100 percent going to slaughter.

Tagged Post Topics Include: Economics, Market updates