Market Closes - September 9, 2013

Posted on Sep 9, 2013
Despite disappointing weekend rainfall and uncertain rainfall for the week ahead, CBOT futures ended the day lower.  Sharp losses in September Soybeans and Corn suggests that the cash market is beginning to loosen up.  Corn harvest is spreading to more areas and basis levels are weakening (Central Illinois saw 10-20 cent drops in spot basis).

USDA reported late today that both corn and soybeans dropped 2 points in the good and excellent categories.  The trade thought soybeans would deteriorate a little more than this.

November Soybeans posted an Outside Down Day; chart support comes in at last week’s low of $13.35. There remains a chart price gap between $13.315 and 13.35 which offers support also.  See CHART here.

Wheat futures also dropped under pressure from corn and soy.  CBOT and KCBT wheat prices are sitting right at key support levels.  Given that the MGEX spring wheat contract broke support to reach new lows, the CBOT and KCBT may follow suit on Tuesday if the overall market doesn’t rally back.

Traders are positioning ahead of Thursday’s Crop Production Report and WASDE.

Live Cattle futures closed slightly lower as traders worry the cash cattle and beef markets won’t strengthen this week.  Boxed Beef dropped today -- Choice down 0.90 at 194.33; Select carcasses down 1.33 at 179.86/cwt.

Lean Hog futures closed mostly higher on firm cash hog and pork markets. Traders will watch receipts to see if supplies may be less than forecasted.

Energy futures dropped in the afternoon as a possible non-combative solution to the Syrian crisis hit the news. The suggestion is for Syria to turn over all the chemical weapons to international control.

18 Major U.S. States Crop Condition/Progress: CORN Dented = 64 pct vs 92 pct year ago and 75 pct average Iowa= 54%, MN= 50%, WI= 38% Mature = 9 pct vs 55 pct year ago and 28 pct average KY = 42%, TN = 42%, IN = 9%, IA = 5% Rated good/excellent = 54 pct vs 56 pct week ago Rated poor/very poor = 17 pct vs 16 pct week ago

SOYBEANS Dropping Leaves = 11 pct vs 34 pct year ago and 19 pct average KY = 6%, TN = 6%, IN = 13%, IA = 2% Rated good/excellent = 52 pct vs 54 pct week ago Rated poor/very poor = 16 pct vs 15 pct week ago

U.S. pasture conditions are deteriorating. Rated good/excellent = 35 pct vs 38 pct week ago Rated poor/very poor = 36 pct vs 34 pct week ago

Spring Wheat Harvested = 80 pct vs 79 pct average

------------------------------ Corn Sep -14 477; Dec -5 463.5 (462-71); Jly -4 491

Bean Sep -33 1404; Nov -11 1356.5 (1351-84); Jly -1 1303 Meal Oct -4 431; Jan -2 425 Oil -55 4288

Wheat Dec -6 641; JLY -6 657 (655-63) KC -7 688;  MGE -10 703

Oats -6 314 Rice -7 1534

LC Oct -32 12535; Dec -30 12872; Feb -7 13092 FC Sep +2 15660; Oct +2 15805; Jan -5 15795 LH Oct -2 9087; Dec +62 8762; Feb +45 8870 Milk Sep +8 1814; Oct -2 1784

US$ -.4%

Dow +141 15063 SP +17 1672 NAS +46 3706 Tran +89 6460 VIX -.22 15.63

WTI -160 10893 Brent -300 11312 Gas -7 279 NG +8 361 HO -6 311 Eth unch 188

Gold unch 1387 Slvr -18 2366

2-yr -.02 0.45% 5-yr -.04 1.72% 10yr -.02 2.92% 30yr -.01 3.85%

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Tagged Post Topics Include: Economics, Market updates