Market Update - August 21, 2015

Posted on Aug 21, 2015
Extreme losses in energy and U.S. equities are weighing on commodity futures despite a weaker U.S. dollar. Traders and investors are growing more concerned about China’s economy and its impact on global economic conditions. Note the VIX is up sharply, indicating the “fear” in the equity market. Big losses in equity portfolios can lead to some liquidation of futures positions due to margin calls. The 10-year Treasury Bond’s yield hasn’t been this low since April; support comes in at 1.85-1.87%.

Technically, corn futures are charting “outside down” days with bearish implications. Soybean futures remain above yesterday’s lows but soybean oil, as well as KC and MGEX wheat futures, are hitting new contract lows.

Cattle futures are down sharply with limit-down losses in Feeder Cattle contracts due to sell-stops being hit. Choice Beef is down 1.69 to 244.77 and Select is down .76 at 234.82.

Lean Hog futures are also trading much lower with pressure coming from pork values and the drop in cattle futures. FOB Plant Pork is down 1.52 to 85.78/cwt due to sharp losses in the value of ham and bellies. The cutout is down from 90.12 on August 18.

Corn Sep -6 365; Dec -6 376; Dec16 -4 399 Bean Sep -14 907; Nov -15 892 (hi 907); Nov16 -11 885 Meal -2 329 Oil -79 2719 Wheat Sep -9 497; Jly -11 509 KC -13 468; MGE -10 503 Oats -8 213 Rice +1 1165

LC Aug -145 14502; Dec -222 14625 FC Aug -165 21155; Oct -450 limit 20232 LH Oct -115 6360; Dec -130 6000 Milk Sep +1 1694

  US$ -.7% Dow -1.6% SP -1.65% NAS -1.8% Tran -1.8% VIX +22.2% 23.39

WTI -2.4% Brent -2.4% Gas -2.2% NG -2.8% HO -2.2% Eth -1.6% Gold +.6% Slvr -1.5%

5-yr -.054 1.434% 10yr -.037 2.047% 30yr -.002 2.750%

Tagged Post Topics Include: Economics, Market updates