Market Closes - September 1, 2015

Posted on Sep 1, 2015
CBOT futures closed mostly lower (except Chicago Wheat) due in part from the bearish outside markets. U.S. equities and energy futures fell sharply today on negative economic news out of China overnight. Last night’s crop condition ratings held steady for the 18-major states so yield threats seem minimal given the current weather outlook (warm with some rainfall).

Corn, meal and soybean oil futures set the trading day’s highs when trading opened Monday evening. KC and MGE Wheat peaked mid-morning and then closed near the day’s lows. Corn also closed at/near the day’s lows. Corn and soybeans remain in a sideways trading range waiting for better definition of crop yields.

Cattle futures closed sharply lower in follow-through selling to Monday’s bearish reversal. The heaviest selling occurred in the 9:00 a.m. hour which may have been related to sharp drop in U.S. stock indexes. Also pressuring cattle futures are the weaker boxed beef and cash cattle markets. Choice down 1.03 at 241.21; Select carcasses down 1.60 at 230.44.

Hanging over the cattle/beef market is the rising weight of cattle being harvested. With fewer cattle available, feedlots are feeding them longer.

Lean hog futures closed slightly lower despite the collapse in cattle futures, equities and energy futures. Support came from higher pork cutouts and futures’ discount to the cash market. FOB Plant Pork gained .33 to 86.17, compared to +.99 at midday. The belly and picnic cuts gave up part of Monday’s gains; ribs and loins were higher today.

Corn Dec -6 369; May -6 387 Bean Nov -13 874; May -12 884 Meal -3 310 Oil -69 2734 Wheat Dec +1 486; Jly unch 498 KC -5 482; MGE -3 511 Oats -6 224 Rice -29 1186

LC Oct -187 14132; Feb -185 14330; Apr -165 14200 FC Sep -155 20027; Oct -255 19532; Jan -270 18632 LH Oct -5 6797; Dec -65 6297; Feb -27 6702 Milk Sep +12 1633; Oct +10 1650

 

US$ -.7% Dow -470 16058 SP -58 1914 NAS -140 4636 Tran -168 7677 VIX +2.97 31.40 +10%

WTI -500 4420 Brent -564 4851 Gas -12 137 NG unch 268 HO -14 156 Eth -1 144 Gold +7 1139 Slvr -2 1455

2-yr -.027 0.712% 5-yr -.050 1.491% 10yr -.044 2.156% 30yr -.017 2.916%

Lexington Auction (Tues) Weighted Average Report for 09/01/2015 Receipts: 667 Last Week: 611 Year Ago: 1066 Compared to yesterday steer and heifer calves sold mostly steady to weak with light demand. Average to good quality offering. Middleweight calves continue to suffer the most from last week's market down turn. Yearling steers and heifers limited comparison. Slaughter cows traded weak with light demand and slaughter bulls sold steady with moderate demand.

3 replacement cattle, 37 slaughter cattle, and 627 feeder cattle.

Tagged Post Topics Include: Economics, Market updates