Market Closes - September 12, 2019

Posted on Sep 12, 2019

Corn Dec +7 367 (353-67); Jly +7 396

Bean Nov +29 895 (869-96); Jly +25 941

  Meal +7 298

  Oil +36 2901

Wheat Dec +6 484; Jly +4 496 (487-99)

  KC +5 403; MGE +5 507

Oats +3 283

Rice +8 1218

 

LC Oct +22 9872; Dec +132 10495; Feb +102 11120

FC Sep +77 13685; Nov +35 13390; Jan +45 13192

LH all contracts up $3.00 limit 

    Oct 6317; Dec 6420; Feb 7060

Milk Sep +1 1830; Oct +75 1916

 

Read today’s KENTUCKY Crop Production Forecast HERE.
Corn   177.0 bu/acre.
Soybean 53.0 bu/acre.

CBOT futures closed strongly higher and at/near the day’s highs, supported by positive news in US/China trade negotiations and technical short-covering by the speculators after corn futures failed to sustain losses immediately following the somewhat bearish USDA crop report. President Trump delayed new October 1st tariffs to October 15. China indicated buying interest for US products including soybeans. News reports indicate Chinese did buy 10 cargoes of US soybeans today. The soybean supply-demand table has US ending stocks dropping from 1.005 billion bushels for 2018/19 to 640 million bushels for 2019/20 (2017/18 ended with 438 million bushels). However, USDA estimates the season average farm price will be $8.50 for both crop years. On the other hand, 2019/20 ending stocks of corn will be a burdensome 2.190 billion bushels, down only 255 million bushels from 2018/19 (2017/18 had 2.140 billion bushels). Technically, corn charts posted bullish “outside UP days”. With spec funds having a large short position, this could lead to more buying tomorrow.  In soybeans, futures peaked at the mid-August high, which represents chart resistance. A higher close tomorrow may suggest an additional rally of around 35 cents over tonight’s closes.

Cattle futures closed higher but generally took a break after strong price gains on Tuesday and Wednesday. The rally has been mostly short-covering as cash cattle and beef values have not moved much. Choice slipped .08 to 219.97 and Select edged down .20 to 198.60.  The limit-up move in hog futures spilled over to support cattle futures.

Even as pork values fell sharply, lean hog futures soared $3.00 higher to limit-up levels. LH rallied on ideas that China is closer to making larger pork purchases as US/China negotiations become more friendly.  FOB Plant Pork fell a sharp 1.98 to 70.47 with belly value down 9%, ribs and butts down 3%.

US$ -.3% 

Dow +45 27182 – up 7 straight days.

SP +9 3010

NAS +25 8194

Tran -48 10714

  VIX -.40 14.21

 

WTI -67 5500

Brent -46 6035

Gas -2 155

NG +2 257

HO -2 188

Eth +1 135

Gold +3 1506

Slvr unch 1803

 

2-yr +.053 1.723%

5-yr +.053 1.645%

10yr +.051 1.784%

30yr +.060 2.268%

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