Market Closes - September 3, 2014

Posted on Sep 4, 2014
CBOT futures closed sharply lower on fund selling as several contract lows were busted. Price pressure was based on improving crop conditions reported last night and rising private corn/soybean production forecasts. The funds are fairly large longs in the corn pit so their selling will add to producer hedge pressure. Harvest is ongoing in southern states. Wheat futures dropped sharply in sympathy with corn futures and talk that Ukraine-Russia tensions may ease.

Cattle futures closed sharply higher with the nearby October LC contract ending LIMIT UP $3.00. Following last Friday’s stronger cash cattle market, traders have become quite optimistic for cattle price. Today’s boxed beef market lent some support, but is lagging the rally in LC futures. Choice up 1.47 at 247.58; Select up 0.11 at 233.94/cwt. October LC are now on par with the last cash trade around $155-156. In after-hours trading, October LC has added more than a $1.50 to the limit-up close. Deferred cattle futures aren’t jumping as much.

Lean Hog futures closed very mixed with the October LH holding its gains into the close and adding to them in after-hours trading. Deferred LH contracts reversed early gains and closed lower. The nearby October LH contract is supported by tighter supplies and a downtrend in average slaughter weights. Spillover support also comes from the strong Live Cattle market. Deferred LH may have been weighed on by news that a PEDV vaccine has been approved by USDA.

Corn Dec -12 352; May -11 374; Dec’15 -10 396 Bean Nov -12 1020; May -11 1041; Nov’15 -10 1031 Meal Oct -8 364; May -6 343 Oil -19 3176 Wheat Dec -19 536; Jly -13 578 KC Dec -16 617; MGE -12 610 Oats -7 339 Rice -8 1252

LC Oct +300 limit 15542; Dec +247 15800; Apr +155 15722 FC Sep +245 22270; Oct +295 22177; Mar +267 21510 LH Oct +122 10110; Dec -30 9310; Apr -130 9110 Milk Sep -7 2406; Oct -33 2234

US$ -.1%

Dow +11 17078 SP -2 2001 NAS -26 4573 Tran -19 8497 VIX +.11 12.36

WTI +266 9554 Brent +243 10277 Gas +8 262 NG -4 385 HO +7 287 Eth -3 200 Gold +5 1269 Slvr +4 1911

2-yr -.01 0.52% 5-yr -.02 1.67% 10yr -.02 2.40% 30yr -.03 3.14%

Mt. Sterling, KY - Blue Grass East Stockyards Cattle Auction Report for 09/03/2014 Cattle Receipts: 908 Last Week: 689 Year Ago: 969 Weekly receipts: 1029 Compared with last week steer calves sold 2.00 to 5.00 higher with good to very good demand. Heifer calves 400-700 lbs 5.00 to 10.00 higher with very good demand; moderate demand for featherweight and heavyweight heifers that were in light supply. Yearling steers sold 4.00 higher with very good demand. Yearling heifers limited comparison with last week’s light test. Quality was average through attractive. CME futures market more favorable this week and a better quality calf offering combined to increase demand on an active market.

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Tagged Post Topics Include: Economics, Market updates