Market Update - June 24, 2013

Posted on Jun 24, 2013
CBOT futures are mostly lower except for July Soybeans and soybean meal.  Plentiful (to excessive) rains in the Corn Belt appear to have traders expecting good growing conditions (big crop).  However, as important to the market today are the bearish financial markets which continue to weaken following last week’s Federal Reserve OMC meeting where Chairman Bernanke suggested the FED’s bond-buying program could be tapered if economic improvement continued.  Adding to the market’s worries is concern about China’s economic situation (analysts are downgrading China’s outlook due to reduced liquidity there).  Problems in China could temper its grain import demand (although food is a high priority).

Live Cattle futures are little changed following Friday’s big rally.  Friday afternoon’s Cattle on Feed Report showed May placements bigger than expected resulting in a larger on-feed inventory.  These extra cattle should come to market in the fall, thus the OCTOBER LC contract is down the most at -40 cents. Feeder Cattle futures are adding to Friday’s huge gains as the 2013 crops get off to a good start and prices fall.

Lean Hog futures are higher with the biggest gains in the July and August contracts.  With the Pork Cutout jumping to near $108/cwt Friday, the summer LH futures are at a significant discount. LH futures were even higher during the first hour of trading but have moderated since then.

Traders are preparing for Friday’s grain stocks and planted acreage reports, as well as the quarterly Hogs and Pigs Report.

Corn Jly -7 654; Sep -10 582; Dec -9 547

Bean Jly +4 1497; Sep -3 1313; Nov -5 1268

Meal Jly +1 449; Dec +1 378

Oil -54 4748

Wheat Jly -18 680 (679-695); Dec -15 702; JLY14 -17 728

KC -15 721; MGE -2 812

Oats unch 396

Rice -26 1565

LC Jun +30 12155; Oct -40 12472; Feb -12 12787

FC Aug +115 14807; Oct +122 15192; Jan +140 15330

LH Jly +142 10117; Oct +67 8577; Dec +22 8252

Milk Jun unch 1803; Jly -18 1761

US$ +.2%

Dow -1.5%

SP -1.8%

NAS -1.7%

Tran -2%

VIX +10% 20.80

WTI -.3%

Brent -1%

Gas -1.6%

NG +.3%

HO -.4%

Eth -.8%

Gold -.7%

Slvr -2%

5-yr +.08 1.52%

10yr +.08 2.62%

30yr +.03 2.62%

 

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Tagged Post Topics Include: Economics, Market updates