Market Closes - October 7, 2014

Posted on Oct 7, 2014
CBOT futures closed mostly higher with WHEAT futures leading the way higher on support from technical short covering by the funds and ideas the US will capture some export business. Corn was able to hold onto most of its move higher, but soybean futures closed over a dime below the highs set mid-morning. Interestingly, November 2014 Soybeans topped at 9.55 – a penny below the chart down-gap created on September 22. If this 9.55-9.56 gap gets closed, the next resistance level looks like $10.00. The funds were large buyers in all three pits. Traders are positioning for Friday’s Crop Report.

Cash Corn basis levels weakened by several cents at some Kentucky elevators. Some locations have very wide cash corn basis, possibly due to a shortage of storage and/or barge transportation.

Most cattle futures contracts closed sharply higher as traders have turned bullish on the strong beef markets and last Friday’s $2-3/cwt gain in cash cattle prices. The October LC contract and November-forward Feeder contracts moved to new highs. Choice carcasses up 2.74 at 243.88; Select up 3.09 at 232.26/cwt. Feeder steers in Lexington brought $2-5/cwt more than yesterday (see report at end of message).

Lean Hog futures traded higher overnight and into the opening of the pit trade @ 9 am CT. But a sharp sell-off ensued quickly as traders learned of weak wholesale pork markets. FOB Plant Pork closed down .70 to 123.75/cwt – same as last Friday’s close. Traders also learned that August pork exports were disappointing. Given the wavering cash markets and uncertainty, the technical aspects (moving averages, chart support/resistance) could play a part in trading in the short run.

U.S. Equity markets closed sharply lower and near the day’s lows as investors are concerned about global economic growth and the varied risks that abound in the world. The VIX jumped 11% as risks increase in these markets. Treasury yields fall as money flows into safe U.S. bonds.

FOMC minutes will be released tomorrow afternoon; traders will analyze for ideas on when the Federal Reserve could change its rate policy.

Corn Dec +8 340; May +8 362; Dec15 +7 388 Bean Nov -1 941; May +1 965; Nov15 +3 963 Meal Oct +7 327; May +3 306 Oil -36 3296 Wheat Dec +15 506; Jly +13 533 KC +13 588; MGE +14 565 Oats +1 351 Rice +3 1274

LC Oct +272 16577; Feb +90 16700; Apr +100 16607 FC Oct +147 24147; Nov +215 24242; mar +205 23455 LH Oct +5 10722; Dec -152 9435; Apr -135 9165 Milk Oct -21 2390; Nov -29 2130

US$ -.1%

Dow -273 16719 SP -30 1935 NAS -70 4385 Tran -209 8175 VIX +1.74 17.20 +11.2%

WTI -183 8851 Brent -101 9178 Gas -7 235 NG +4 394 HO -2 260 Eth +3 156 Gold +1 1209 Slvr -6 1716

2-yr -.024 0.508% 5-yr -.068 1.624% 10yr -.084 2.341% 30yr -.082 3.046%

Blue Grass Stockyards Cattle Report for 10/07/2014      Receipts:  1183   Last Tuesday:  1244   Year Ago:  1034 Compared to Monday steers calves sold 2.00 to 5.00 higher with very good demand with most advance on 500-600 lbs.  Yearling steers sold steady to firm with good demand.  Heifer calves sold steady with good demand; yearling heifers sold firm in a limited comparison however fleshy 600-800 in light demand.  Quality was average to good.  Slaughter cows sold steady to 1.00 lower with good demand.  Slaughter bulls sold steady to weak with light to moderate demand.

Total supply included 09% slaughter cows, 01% slaughter bulls, 01% replacements and 89% feeders.  Feeder supply 53% steers, 19% bulls, 28% heifers with 56% of feeders weighing over 600 lbs.

KENTUCKY CASH GRAIN PRICES Click Here 

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Tagged Post Topics Include: Economics, Market updates