Market Closes - September 18, 2013

Posted on Sep 18, 2013
Agricultural futures markets closed near the highs of the day as prices rallied in response to the Federal Reserve announcing at 2 pm ET that the Federal Reserve will NOT taper its bond buying program.  This surprised most of the financial market participants. As a result, the financial markets reacted strongly with the Dow and SP500 Index setting new record highs, Treasury rates falling sharply, and energy and precious metal prices soaring.  The U.S. Dollar’s value also fell sharply from this news.  Thus, the “outside markets” are friendly to commodity prices.

The Fed also downgraded its outlook for the economy. The central bank now expects gross domestic product growth will be in the 2.0-2.3 pct range this year, down from 2.3-2.6 pct forecast earlier this year. It also cut the 2014 forecast to 2.9-3.1 pct from 3.0-3.5 pct.   Read the FOMC Statement here.

Other factors supportive at the CBOT include large export sales for soybeans and the FSA Prevent Plant acreage update that will lower the acreage used to calculate the next USDA Crop Production estimates for corn and soybeans.

Technically, corn, wheat and soybean charts all have well-defined support levels that continue to hold prices up.  Should these support levels be broken, futures could continue lower into a harvest low.

Cattle futures closed higher after starting out lower.  There’s little fundamental news to trade.  The October LC contract has moved in a mostly sideways range the past two weeks.

Lean Hog futures rallied strongly during the afternoon, possibly responding to stronger pork values.  The FOB Plant Pork Cutout rose 0.91 to $99.52/cwt.

Corn Dec +2 456; Jly +2 484; Dec14 +2.5 495

Bean Nov +5 1348; Jly +8 1299; Nov14 +7.5 1189 Meal Oct -2 427; Jly +1 400 Oil +47 4247

Wheat Dec +3.5 646.5; Jly +3.5 658 KC +2 692; MGE +1 700

Oats -3 304

Rice +8 1561

LC Oct +10 12527; Dec +35 12900; Feb +27 13075 FC Sep +55 15715; Oct +42 15830; Jan +45 15895 LH Oct +77 9175; Dec +47 8800; Feb +50 8910 Milk Sep unch 1814; Oct +19 1785

US$ -1.2%

Dow +147 15677 SP +21 1726 NAS +38 3784 Tran +102 6706 VIX -.94 13.59 (-6.5%)

WTI +272 10814 Brent +235 11054 Gas +8 274 NG -2 373 HO +4 304 Eth +6 184.5

Gold +54 1364 (+4%) Slvr +120 2294  (+5.5%)

2-yr -.05 0.33% 5-yr -.17 1.44% 10yr -.15 2.70% 30yr -.08 3.75%

Blue Grass Stockyards Cattle Report for 09/17/2013  Receipts:  1,546   Last Tuesday:  1,430   Year Ago:  934

Compared to Monday steer calves sold steady with moderate demand on a good quality offering.  Heifer calves sold about steady except 400-500 lbs sold weak with moderate demand on a good quality offering. Yearling steers and heifers sold about steady with good demand.  Slaughter cows sold 2.00 to 3.00 lower with light demand. Slaughter bulls sold 1.00 lower with moderate demand.

Total supply included 06% slaughter cows, 01% slaughter bulls, less than 01% replacements and 93% feeders.  Feeder supply 63% steers, 12% bulls, 25% heifers with 60% of feeders weighing over 600 lbs.

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Tagged Post Topics Include: Economics, Market updates