Market Closes - September 8, 2014

Posted on Sep 8, 2014
Corn and soybean futures sold off as early concern for frost in the northern Corn Belt was softened. Today’s lows stayed above lows set last Thursday/Friday. Wheat futures traded steady to lower with some pressure from the corn and soy pits. However, the closes were in the upper part of the day’s ranges. Traders are preparing for the next USDA Crop Report coming at midday Thursday, September 11. Central IL corn and soybean processor basis was reported weaker. The stronger US dollar is bearish exports.

Tonight’s Crop Condition Report shows corn and soybeans on average are in the same condition as a week ago. Crops remain much healthier than a year ago.

Corn Conditions – 18 States .        Good/Excellent Poor/V.Poor This Week 74% 7% Last Week 74% 7% Last year 54% 17%

In MATURE stage: 15% vs 26% average

Soybean Conditions – 18 States .       Good/Excellent Poor/V.Poor This Week 72% 6% Last Week 72% 6% Last year 52% 16%

Setting Dropping Leaves: 12% vs 17% average

SPRING Wheat Harvested – 6 States 58% this week versus 78% last year and 78% for 5-year average.

U.S. Pasture: 48% good/excellent vs 48% last week and 35% year ago. 20% poor/v.poor vs 20% last week and 36% year ago.

Live Cattle futures closed mostly lower with the nearby October LC down moderately. The 2-week rally was turned back at chart resistance set in late July. After bottoming a week ago, wholesale beef is catching up with the rising cattle futures and cash market. Box beef values rose sharply with Choice up 2.72 @ 251.39 and Select up 1.59 @ 237.84/cwt. Choice beef is now $5/cwt above last week’s lows. However Feeder Cattle futures continue to rally and set new contract highs. Feeders are bidding away their margins. The USDA report on July beef exports was also a negative factor.

Lean Hog futures fell sharply in the nearby October LH contract but closed higher in the other contracts. October traded a bearish key reversal; this comes after a 9-day rally of over $15/cwt. October is holding a sharp premium to cash hog carcass price. FOB Plant Pork gained .38 to 103.54/cwt. Corn Dec -8 348 (346-58); May -7 370; Dec’15 -7 393 Bean Nov -13 1008 (1006-28); May -13 1028; Nov’15 -16 1020 Meal Oct -4 353; May -5 336 Oil -32 3196 Wheat Dec -2 533; Jly -1 572 (564-77) KC unch 629; MGE -1 611 Oats +2 347 Rice -4 1244

LC Oct -122 15852; Feb +25 15945; Apr -22 15732 FC Sep +142 22715; Oct +155 22592; Mar +112 21735 LH Oct -255 10307; Dec +60 9605; Apr +125 9080 Milk Sep +13 2441; Oct +33 2300

US$ +.6% 84.29

Dow -26 17111 SP -6 2001 NAS +9 4592 VIX +.61 12.70

WTI -9 9320 (low 9180) Brent -47 10035 (low 9936) Gas -2 256 NG +10 389 HO -1 281 Eth -2 199 Gold -12 1255 Slvr -13 1903

2-yr +.020 0.532% 5-yr +.028 1.717% 10yr +.013 2.473% 30yr -.009 3.228%

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Tagged Post Topics Include: Economics, Market updates