Market Closes - September 10, 2013

Posted on Sep 10, 2013
CBOT futures closed mixed but showed strength late in the day; corn and wheat closed higher and near the day’s highs.  Given that large funds are short corn and wheat futures, today’s rally on little fundamental news was probably short-covering ahead of Thursday’s Crop Production Report.  KC and CBOT wheat bounced off key chart support. Weakness in cash basis levels pressured the soon-to-expire September corn and soybean futures contracts.

Corn production is estimated to be 13.646 billion bushels on a yield of 153.7 bushels per acre. Soybean production is estimated to be 3.149 billion bushels with a yield of 41.3 bushels per acre. All wheat production is estimated to be 2.106 billion bushels.

Cattle futures closed lower after trading both sides of unchanged.  Without a stronger cash cattle or beef market, there isn’t enough buying power to move prices higher.  The large funds are already very long Live Cattle futures.  Boxed beef prices dropped again -- Choice carcasses down 0.60 at 193.73 and Select carcasses down 1.12 at 178.74/cwt.

Lean Hog futures closed slightly lower after trading a wide range today.  Prices dropped significantly until a rally kicked in after 10:30 a.m CT.   By the close, prices had returned to near the day’s highs. October made a new contract high close. The Pork Cutout gained 45-85 cents.  A drop in receipts and weights has apparently trimmed pork supply as of late; seasonality and above-normal temperatures may be contributing to this.

Corn Sep -2 475; Dec +5.5 469 (461-469.5); Jly +5.5 497 Bean Sep -.5 1404; Nov -1.5 1355 (1340-1363); Jly unch 1303 Meal Oct -2 428; Jly +1 399 Oil -7 4281

Wheat Dec +5 646; Jly +3 660 (652-663) KC +6 695; MGE +3 706

Oats +5 319 Rice +9 1543

LC Oct -32 12502; Dec -7 12865; Apr -27 13207 FC Sep -20 15640; Oct -27 15777; Jan -17 15777 LH Oct -2 9085; Dec -7 8755; Apr -20 8720 Milk Sep +3 1817; Oct +26 1808

US$ steady Dow +128 15191 SP +12 1684 NAS +23 3729 Tran +125 6585 VIX -1.1 14.53  -7%

WTI -233 10719 Brent -234 11138 Gas -6.5 274 NG -2 358 HO -5 307 Eth +1 189.5

Gold -23 1363 Slvr -70 2297

2-yr +.02 0.47% 5-yr +.05 1.77% 10yr +.05 2.97% 30yr +.04 3.90%

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Tagged Post Topics Include: Economics, Market updates