Market Update - February 5, 2015

Posted on Feb 5, 2015
CBOT futures are steady to higher as the outside markets turned friendly today, reversing yesterday’s price action. Today’s grain/bean export sales reports appeared to be neutral. Soybean futures are supported by the sharp rally in soybean oil futures, following the crude oil market up. Wheat has support from increased talk of export business.

Live Cattle futures are holding up somewhat thanks to no confirmed cash trades below last week’s $159/cwt and by a firm midday boxed beef market. Choice beef down .30 to 242.45 and Select up 1.31 to 236.89. However, the Feeder Cattle futures market fell through the “double bottom” chart support levels set this and last week. Feeder futures have less volume traded and can be more volatile. FC have rallied in the past minutes to near that key chart level – let’s see how we close.

Lean Hog futures are making new contract lows as the cash hog/pork markets weaken further. FOB Plant Pork down 1.04 to 73.64 on weaker loin, picnic and rib values. Trouble with the West Coast ports may be backing product up into US channels/freezers.

Corn Mar unch 383; Jly -1 398; Dec unch 414 Bean Mar +8 980; Jly +7 991; Nov +8 963 Meal Mar -2 331; Oct -1 316 Oil +114 3173 Wheat Mar +9 520; Jly +6 525 (high 532) KC +6 559; MGE +6 572 Oats +8 289 Rice +19 1044

LC Feb +32 15332; Apr -25 14840; Oct -5 14335 FC Mar -107 19565; May -107 19655; Aug -100 19797 LH Feb -145 6365; Apr -192 6620; Jun -167 7795 Milk Feb +6 1580; Mar +8 1568

US$ -.4%

Dow +.8% SP +.8% NAS +.7% Tran +.4% VIx -7.6% 16.93

WTI +5.7% Brent +5.3% Gas +4% NG -.5% HO +3% Eth +.7% Gold -.1% Slvr -1.6%

5-yr +.010 1.299% 10yr +.015 1.810% 30yr +.028 2.415%

Blue Grass Stockyards Cattle Weekly Summary Report for the week ending 02/04/15 Receipts: 995 Last Week: 1564 Year Ago: 2697 Compared to last week steer calves sold mixed; 400-500 lbs and 600-700 lbs sold 7.00 to 10.00 higher with good demand in a light test despite a softer CME feeder cattle futures market; 500-600 lb steers sold weak in a light test with moderate demand. Yearling steers sold steady to weak with light demand. Heifer calves sold about steady with moderate demand; however 600-700 lbs sold 2.00 to 3.00 higher with good demand. Yearlings sold about steady in a limited comparison. Quality was average through good. Slaughter cows sold 3.00 to 4.00 higher with good demand. Slaughter bulls sold 5.00 higher with good demand. Total supply included 10% slaughter cows, 02% slaughter bulls, less than 01% replacements and 88% feeders. Feeder supply 46% steers, 21% bulls, 33% heifers with 51% of feeders weighing over 600 lbs.

Tagged Post Topics Include: Economics, Market updates