Market Closes - September 19, 2014

Posted on Sep 20, 2014
Corn, wheat and soybean futures closed sharply lower and at/near the day’s lows as harvest activity picks up and the US dollar resumes its move higher after yesterday’s 1-day setback. December Corn broke to a new contract low; unfortunately, chart support depends on the nearby continuation chart with support at $3.24 and then $3.00. November Soybeans also broke to a new low; chart support is layered from 9.43 down to $9.00. A good sign is that China is still buying but with prices falling, China won’t be aggressive. The large funds in the futures market may push the market lower than fundamentals warrant. Wheat futures also hit new lows as global supplies are surplus and rains the coming week are focused on west TX and most of Kansas wheat country. The 2015 wheat crop should have a very good start this fall. Corn, wheat and soybean futures have not been this low since mid-2010, 4 years ago. Crop basis also appears to be under pressure.

Cattle futures closed higher even as the beef market weakened. Choice down 1.17 at 243.71; Select down 2.48 at 229.61/cwt. This afternoon’s Cattle on Feed Report had numbers close to expectations. Feeder Cattle futures remain near contract highs with support coming from falling corn prices and tight cattle supplies.

Lean Hog futures closed mixed but the nearby October LH contract closed limit up after pork values soared on Thursday. Pork values backed off a little this afternoon.

Corn Dec -7 331 (331-38); May -6 353; Dec15 -6 378 Bean Nov -14 957 (956-72); May -15 979; Nov15 -15 970 Meal Oct -5 324; May -5 313 Oil -26 3246 Wheat Dec -14 474; Jly -14 512 (511-25) KC -9 560; MGE -15 535 Oats -5 337 Rice +8 1270

LC Oct +2 15562 (15510-15627); Feb +87 16025; Apr +77 15920 FC Sep +70 23060 (23060-23100); Oct +102 22872; Mar +62 21907 LH Oct +300 limit 10597; Dec +105 9485; Apr -20 9010 Milk Oct -6 2470; Nov -19 2263

US$ +.6%

Dow +14 17280 SP -1 2010 NAS -14 4580 Tran -42 8634 VIX +.08 12.11

WTI -33 9165 Brent +69 9839 Gas +5 261 NG -7 384 HO unch 272 Eth unch 166

Gold -10 1217 Slvr -67 1784 This takes nearby Silver futures to a new low which hasn’t been seen since August 2010. Support may come in at $17 and then $15. Gold has support at $1180. The strengthening US dollar is bearish commodity prices unless world events shake it up.

2-yr -.016 0.569% 5-yr -.048 1.816% 10yr -.067 2.578% 30yr -.075 3.286%

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Tagged Post Topics Include: Economics, Market updates