Market Closes - September 16, 2020

Posted on Sep 16, 2020

Corn Dec +6 372 (362-72); Mar +5 381

Bean Nov +20 1011 (985-1014); Mar +18 1014

  Meal Oct +6 321 (313-21)

  Oil +86 3494

Wheat Dec +4 542; Jly +4 556 (547-56)

  KC +7 475; MGE +7 531

Oats +4 273

Rice +1 1216

 

LC Oct -37 10672; Dec +37 11195; Feb +22 11625

FC Sep -117 14050; Nov -60 14352; Jan -32 14165

LH Oct -47 6522; Dec -107 6197; Feb -95 6775

Milk Sep -10 1623; Oct +14 1881

CBOT futures closed higher to sharply higher and at/near the day’s highs. Although initially weaker on Tuesday evening, CBOT futures rallied sharply when futures opened at 8:30 a.m. CT. Today’s chart action is bullish for corn and soybean futures. Futures are continuing to be supported by frequent Chinese purchases of U.S. soybeans and corn, as well as ideas that U.S. average yields will likely be forecasted lower in the October USDA report. Traders are talking about China’s corn crop being damaged by typhoons. The funds were large buyers today. While the funds have a huge long position in soybeans, they are just getting started getting long corn (so they have plenty of buying power). Although soybean futures are setting new contract highs, December corn has only recovered around 61% of its January 2020-August decline of 85 cents. That’s near a technical resistance level but a further soybean rally could pull corn through it. USDA’s weekly export sales report comes out tomorrow morning.

Live cattle closed narrowly mixed and feeder futures finished to the downside. October LC continue to be weighed down by its sizable premium to the cash market. Good news is that fed steers traded today at $2-3/cwt higher, mostly around $103-104. Fewer cattle are available from the feedlots this week and packers have very good margins. Choice beef slipped .71 to 215.38 and Select fell 1.77 to 204.51.

Lean hog futures closed lower as traders lose confidence that Germany’s ASF problem will benefit the U.S. greatly. Weekly export sales reports will be the proof. FOB Plant Pork dropped 1.12 to 83.14; this comes after yesterday’s huge rise in the cutout. Loins gave up 2.38 of Tuesday’s 6.01 gain. Belly value firmed up again, ending at 137.85.

US$ steady 93.10

Dow +37 28032

SP -16 3385

NAS -140 11050

Tran +78 11555

  VIX +.56 26.12

 

WTI +188 4043

Brent +177 4230

Gas +5 119

NG -9 227

HO +2 112

Eth -1 129

Gold +4 1962

Slvr +1 2748

 

2-yr unch  0.139%

5-yr +.006 0.275%

10yr +.013 0.692%

30yr +.024 1.454%

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