Market Update - July 10, 2014

Posted on Jul 10, 2014
CBOT futures are mostly lower, although soybean oil is higher after seeing a 12+ percent drop in the past two weeks. Traders are preparing for tomorrow’s USDA report on carryout forecasts. The 2-week outlook has below-normal temperatures which should favor excellent pollination.

ENSO Alert System Status: El Niño Watch July 10 Synopsis: The chance of El Niño is about 70% during the Northern Hemisphere summer and is close to 80% during the fall and early winter.

Livestock futures are down sharply as profit-taking continues given the shakiness in financial markets this week. Cash cattle have reportedly traded $2/cwt weaker than last week; however, this price ($156) remains at a sharp premium to the August LC contract. These prices need to merge in August. LC and FC futures have lost several dollars (as much as $8) in the last 3 days.

Cash hog and pork prices were higher on Wednesday, but futures are off sharply beyond the nearby July contract. Traders are leery of consumer demand weakening and of pork supplies being bigger than expected.

U.S. equities are down sharply in sympathy with large losses in the European markets due to concerns about banks in Portugal and weak economic growth. U.S. jobless claims were lower than expected and a positive note for the US economy.

Corn Sep -6 385; Dec -5 392 (392-401) Bean Aug -8 1238; Sep -6 1126; Nov -6 1097 (1096-1115) Meal Aug -3 403; Oct -3 355 Oil +21 3735 Wheat Sep -3 548; Dec -4 570 KC -8 645; MGE -5 642 Oats +1 339 Rice +7 1352

LC Aug -215; Dec -182 15222; Apr -155 15185 FC Aug -267 21092; Oct -287 21200; Mar -270 20555 LH Jly -55 13275; Aug -160 12800; Dec -187 10357 Milk Jly +8 2138; Aug +15 2050

US$ +.15%

Dow -.6% SP -.5% NAS -.6% Tran -.4% VIX +6.4% 12.40 WTI -1.% Brent -.2% Gas steady NG -.6% HO +.4% Eth -1.5% Gold +1% Slvr +2%

5-yr -.03 1.64% 10yr -.02 2.525% 30yr -.01 3.35%

Blue Grass Stockyards Cattle Weekly Summary Report for the week ending 07/09/14 ***Total receipts include 588 head sold in CPH sale Wed. night.

Receipts: 2,582 Last Week: 1,812 Year Ago: 3,314 Compared to last week steer calves under 500 lbs 5.00 to 10.00 higher, over 500 lbs sold steady with good to very good demand. Heifer calves sold steady to 2.00 higher except 500-600 lbs 5.00-10.00 higher with very good demand. Yearling steers and heifers 3.00 to 4.00 higher with very good demand in a limited comparison. Exceptionally good demand for yearling Holsteins this week. Slaughter cows and slaughter bulls sold steady with good demand. Total supply included 07% slaughter cows, 01% slaughter bulls, 01% replacements and 91% feeders. Feeder supply 53% steers, 09% bulls, 38% heifers with 46% of feeders weighing over 600 lbs. 

KENTUCKY CASH GRAIN PRICES Click Here 

KENTUCKY LIVESTOCK AUCTIONS --  Click Here 

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Tagged Post Topics Include: Economics, Market updates