Market Update - August 11, 2015

Posted on Aug 11, 2015
A surprise Chinese currency devaluation of about 2 percent overnight is roiling the markets today as US equities, energy futures and grain markets are down sharply. Traders fear a currency war and increased market uncertainty.

CBOT futures are also pressured by yesterday’s better-than-expected crop ratings and less concern about tomorrow’s USDA production forecasts. A setback isn’t real surprising given Monday’s huge gains. While the US Dollar Index is slightly weaker, our products will be more expensive for China and some other Asian buyers.

Cattle futures are little changed with minor support coming from higher boxed beef values --Choice Beef is up .61 at 239.13 and Select is up 1.16 at 233.08. Feeders are a little better thanks to the lower CBOT.

Lean Hog futures are trading mixed despite a sharp drop in pork cutouts. FOB Plant Pork is down 2.29 to 87.91 on sharply lower ham values; only ribs are up in value.

Corn Sep -11 379; Dec -11 389 (387-99) Bean Sep -22 986; Nov -19 975 (974-92) Meal -7 346 Oil -70 2979 Wheat Sep -17 508; Jly -15 530 (526-41) KC -17 488; MGE -13 521 Oats -2 231 Rice +2 1188

LC Aug -12 15012; Dec -5 15072 FC Aug +20 21445; Oct +27 20850 LH Aug +35 7700; Oct -42 6255 Milk Aug +6 1650; Sep -4 1666

 

US$ -.1% Dow -225 17390 SP -25 2079 NAS -63 5039 Tran -49 8323 VIX +1.84 14.07 +15%

WTI -4% Brent -3% Gas -1.2% NG -1.2% HO -2.5% Eth -1.7% Gold +.3% Slvr -.3%

5-yr -.113 1.507% 10yr -.117 2.121% 30yr -.108 2.794%

Lexington Auction Weighted Average Report for 08/10/2015 Receipts: 805 Last Week: 700 Year Ago: 699 Compared to last week steer calves sold 2.00 to 4.00 higher with good demand. Heifer calves sold about steady with good demand. Quality was plain through good. Yearling steers sold 2.00 higher with good demand. Slaughter cows and slaughter bulls sold weak with moderate demand.

12 replacement cattle, 86 slaughter cattle, and 707 feeder cattle. Today's supply included 55.3 percent that weighed over 600 lbs. 46.4 percent steers and 16.6 percent bull calves 4.5 percent Holstein Steers and 22.8 percent heifers of total recorded feeder supply. 63 head of slaughter cows with 97 percent going to slaughter. 23 head of slaughter bulls with 96 percent going to slaughter.

Tagged Post Topics Include: Economics, Market updates