Market Closes - October 9, 2014

Posted on Oct 9, 2014
CBOT futures closed mixed in reaction to the morning’s weekly export sales report. Corn futures made a 3-week high but remain below a key chart resistance point.

Average trade guess for tomorrow’s USDA Crop Report: Corn Prod’n = 14.52 billion bushels vs 14.395 from USDA September Crop Report 2014/15 Ending Stocks = 2.13 billion vs 2.00 last month. Soybean Prod’n = 3.98 billion bushels vs 3.913 billion in September.

Some very heavy rain is forecast the next 5 days. The focus is from eastern KS/OK east to the Appalachians. Clear out the river bottoms.

Cattle futures were very volatile today with sharp losses in sympathy with the SHARP drop in U.S. equity values. For months, market reports have seldom referenced the economy on price movements in CME livestock futures. Looks like cattle futures were just stretched too tight and investor/trader anxiety this afternoon tipped the balance toward the sellers. Prices of stocks or commodities normally fall much faster than they go up. Technically, cattle futures posted Bearish Key Reversals. Fed cattle owners will have a tough decision tomorrow on what price to accept for cattle that need to be moved to slaughter. A good sign is that the PM boxed beef report still showed Choice up .51 to 247.06/cwt.

Lean Hog futures closed mixed with positive changes in the nearby contracts. However, the sharp drop in cattle futures weighed on LH futures. FOB Plant Pork closed near steady at 123.45/cwt. Hog futures have not been stretched like cattle have recently.

The equity markets sold off sharply as investors become more worried that a significant market correction is coming. On CNBC.com, the selloff was attributed to weak German trade data, ECB Chief Draghi negative comments, ebola issues and crude oil dropping sharply.

Corn Dec +2 345; May +1 366; Dec15 unch 390 Bean Nov +7 942; May +6 967; Nov15 +4 964 Meal Dec +4 313; May +3 307 Oil unch 3288 Wheat Dec -14 493; Jly -14 519 KC -14 573; MGE -11 553 Oats unch 344 Rice -3 1259

LC Oct -210 16400 (hi 16775); Dec -217 16587; Apr -45 16640 Late-day trade shows October down 157, but April is down 192. FC Oct -67 24165 (hi 24480); Nov -140 24152; Mar -92 23427 Late-day electronic trade has some deferred Feeder Cattle contracts down the $3.00 limit.

LH Oct +137 10950 (hi 10985); Dec +45 9562; Apr -32 9200 Late-day electronic trade has October LH @ 10892.

Milk Oct +18 2413; Nov +57 2187

US$ +.3% (was weaker in the morning)

Dow -335 16659 SP -41 1928 NAS -90 4378 Tran -199 8054 VIX +3.65 18.76 (hasn’t been this high since early February 2014)

WTI -292 8439 (lowest in 2 years) Brent -261 8877 Gas -8 224 NG unch 386 HO -6 252 Eth unch 159 Gold +19 1225 Slvr +31 1737

2-yr -.016 0.444% 5-yr -.012 1.561% 10yr -.014 2.316% 30yr -.009 3.052%

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Tagged Post Topics Include: Economics, Market updates