Market Update - March 18, 2013

Posted on Mar 18, 2013
Financial markets were shocked over the weekend by a bailout deal for Cyprus banks which taxed the savings/checking accounts by 6.75-9.00 percent. The Cyprus government has not approved the deal yet, but that country’s banks are closed to prevent a run. This unexpected method of financing a bailout has shaken financial markets and helped to strengthen the US dollar and lower US Treasury yields.

The stronger US dollar is negative for US commodity exports and thus agricultural futures are nearly all lower, as are most energy futures and copper. Gold is up slightly on its “safe haven” feature.

CBOT futures are lower and at/near the day’s lows. The increased risk in financial markets encourage traders to take risk off the table. The spec funds are already long the corn and soybean markets, but short wheat. The MAY SOYBEAN contract has support at $13.935, then 13.44.

Cattle futures are mostly lower in follow-through selling from Friday’s sharp losses. Weather has not been helpful to encourage grilling.

Lean Hog futures are also lower on the general commodity selling and weak demand for pork. The stronger dollar will discourage pork exports.

Corn May -5 712; Jly -5 695; Dec -4.5 557 Bean May -18 1408; Jly -18 1392; Nov -7 1254 (low 1247) Meal May -4.5 414; Oct unch 355.5 Oil -65 4926 Wheat May -17 706; Jly -14 707 KC -13 738; MGE -11 785

LC Apr +27 12605; Jun -17 12112; Oct -5 12677 FC Mar -15 13652; Apr -22 13887; Aug -30 14772 LH Apr -55 7912; Jun -50 8882; Oct -45 8042 Milk Mar +1 1696; Apr +11 1726

Oats -5 397 Rice -11 1457

US$ +.5% Dow -.1% SP -.2% NAS -.1% Tran +.2%   VIX +12.3% 12.69

WTI +.2% Brent -.3% Gas -.6% NG +.9% HO -.2% Eth -.7%

Gold +.8% Slvr +.1%

5-yr -.04 0.81% 10yr -.05 1.95% 30yr -.05 3.16%  KENTUCKY CASH GRAIN BIDS Click Here

Tagged Post Topics Include: Economics, Market updates