Market Closes - October 3, 2014

Posted on Oct 3, 2014
CBOT futures closed mixed with sharp losses in soybeans. Outside markets were bearish with the US dollar hitting a new 4-year HIGH and OIL futures dropping sharply, as did precious metals. WTI Oil hit an 18-month low. Gold futures hit a 4-year low. Falling energy prices have weighed on ethanol prices which may decrease ethanol production and the amount of corn used.

Today’s soybean selloff came after INFORMA released its latest forecasts (yield up 2.0 to 48.5 bu/acre; production up to 4.017 billion bushels). November Soybeans have support at Wednesday’s low of $9.04. Long-term chart support sits at $9.00 and then layered down to $8.50. INFORMA also raised its corn yield estimate from 171.8 bu/ac to 176.4 bu/ac; the only thing saving corn price is the expectation of fewer harvested acres than USDA is currently using in its production calculation. December Corn has chart support at $3.1825 and $3.00. October 10th’s Crop Report could determine if the CBOT takes another step lower or builds a base to move higher.

Wheat closed higher on the day and made a strong move up for the week. Wheat found support this week from export sales and short-covering by the huge spec funds.

Cattle futures closed mixed with weakness in the nearby contracts on profit-taking amid an uncertain and lightly traded cash market. October LC and FC actually hit new contract highs overnight before reversing lower. Late-day sales were reported at $160-162, up $2-3/cwt from last week. Choice Beef was down 0.13 at 238.32; Select down 0.97 at 226.36/cwt.

Lean Hog futures closed lower with large losses in the nearby contracts – which followed much higher futures prices overnight. Traders may have turned cautious going into the weekend and booked profits. Pork ended the day with strength as the FOB Plant Pork Cutout rose 1.33 to 123.75 – the highest this week.

US equities soared today on good news of strong job growth in September bringing the unemployment rate down to 5.9 pct. However, this news couldn’t stop energy prices from falling or cause Treasury yields to rise much.

Corn Dec unch 323 (321-26); May +1 345; Dec15 +1 371 Bean Nov -12 912 (910-28); May -14 935; Nov15 -15 934 Meal Oct -1 308; May -4 294 Oil -38 3229 Wheat Dec +3 486; Jly unch 514 (508-18) KC +6 568; MGE +8 543 Oats -2 342 Rice +3 1258

LC Oct -45 16240; Dec -55 16587; Apr +5 16430 FC Oct -22 24087; Jan +85 23472; Mar +80 23307 LH Oct -117 10560; Dec -190 9302; Apr -50 9130 Milk Oct +24 2427; Nov +44 2174

US$ +1.2% 86.63

Dow +209 17010 SP +22 1968 NAS +45 4476 Tran +176 8482 VIX -1.61 14.55 -10%

WTI -127 8974 Brent -118 9224 Gas -3 238 NG +11 404 HO -2 262 Eth +2 150 Gold -22 1193 Slvr -22 1683

2-yr +.027 0.563% 5-yr +.021 1.720% 10yr unch 2.436% 30yr -.027 3.125%

Kentucky Weekly Livestock Summary for the week of Sep 26-Oct 2, 2014. Receipts This Week   Last Week    Last Year 24,532      22,829       22,739

Compared to last week Steer Calves sold mostly steady with instances to 5.00 higher. Demand was very good. Heifer calves sold steady to 5.00 higher with most advance in the 400-600 lbs weight range. Demand was good to very good for most offerings. Quality was good through attractive. Yearling Steers and Heifers sold 2.00 higher with good demand. Slaughter Cows sold 1.00 to 2.00 higher and Slaughter Bulls 2.00 higher with good demand.

Supply: Slaughter Cows 5 percent; Slaughter Bulls 1 percent; Feeder cattle 91 percent. In the feeder supply, Steers made up approximately 41 percent and Heifers approximately 35 percent. Steers and Heifers over 600 lbs totaled approximately 40 percent. Replacement cattle 3 percent.

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