Market Closes - September 10, 2020

Posted on Sep 10, 2020

Corn Dec +5 365 (359-67); Mar +4 375

Bean Nov -1 977 (974-82); Mar -1 980

  Meal unch 313 (312-14)

  Oil +3 3303

Wheat Dec +4 548; Jly +4 562 (557-68)

  KC +3 474; MGE unch 535

Oats +4 272

Rice +4 1248

 

LC Oct +40 10510; Dec +27 10942; Feb +62 11405

FC Sep +77 13917; Nov +145 14040; Jan +180 13882

LH Oct +300 limit 6437; Dec +300 6285; Feb +300 6740

Milk Sep -16 1646; Oct +25 1873

CBOT futures traded steady to mostly higher ahead of Friday’s USDA crop reports. Corn made strong gains on ideas that USDA will cut the U.S. corn yield and acreage, thus ending stocks, which may tighten further if China needs to buy much more corn than currently forecast by USDA. It’s reported that China’s domestic corn prices are at 5-year highs. The spec funds have apparently moved slightly to the long side of corn futures. Technically, corn futures closed above major chart resistance. Wheat also closed higher but low range. Strength is associated with importers being active in the market and dryness in the Ukraine and Russia. The U.S. Dollar was weak early this morning, but rallied strongly after 9:30 am. Soybean futures rallied early with corn but couldn’t hold the gains. Today’s negative action ended the November contract’s 12-day run of consecutively higher closes. USDA is expected to drop soybean production and increase demand, leading to 20/21 ending stocks of 465 million bushels, down from the 610 million forecast in the August WASDE. November soybeans have rallied over one dollar per bushel in the last 30 days.

Live cattle closed slightly higher while feeder futures made bigger gains. Early strength may have been in sympathy with lean hog’s limit-up move at the opening. But weaker beef values and this week’s softer cash live market weighed on futures. Choice beef fell 2.12 to 220.83 and Select slipped .19 to 207.32. Movement was heavy, similar to yesterday. Market is not well established today, but recent trades were $101/cwt live and $160-161 dressed. Formula purchases averaged 901 pounds and $168.05/cwt.

Lean hog futures closed sharply higher, with the first 3 contracts up the daily $3.00 limit (expands to $4.50 tomorrow). Futures were supported by news that ASF was found in a wild hog in Germany. South Korea has banned German pork imports; other countries may follow, leading to increased U.S. pork exports. For the first-half of 2020, 61% of German pork exports went to China.  FOB Plant Pork ended .73 higher at 80.86. Hams and loins were up 3%.

USDA Reminds Farmers of Sept. 30 Deadline to Update Safety-Net Program Crop Yields
https://content.govdelivery.com/accounts/USFSA/bulletins/29f9856

 

US$ +.1% 93.38

Dow -406 27535

SP -60 3339

NAS -222 10920

Tran -66 11179

  VIX +.90  29.71

 

WTI -103 3738

Brent -98 3981

Gas -3 109

NG -10 231

HO -3 108

Eth unch 131

Gold -2 1945

Slvr +21 2716

 

2-yr -.004 0.141%

5-yr -.007 0.271%

10yr -.016 0.687%

30yr -.032 1.428%

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