Market Update - March 23, 2015

Posted on Mar 23, 2015
CBOT futures are posting solid gains at midday on a weaker US dollar and follow-through buying from Friday’s session. Wheat futures are supported by dry conditions in many HRW wheat areas and reports of winterkill damage. Black Sea production areas are also stressed by dry soils. Soybean futures are supported by the large soybean oil rally and by continued strong demand for US soybean meal. Corn futures have climbed back into the upper half of the sideways trading range that’s formed since January.

Friday’s CFTC report for positions as of last Tuesday showed the large spec funds were short (net sellers) of corn, soybean and CBOT wheat futures. This gives these traders room/reason to buy futures going into the March 31st Planting Intentions Report.

Cattle futures are strongly higher after some contracts “gapped higher” on the opening bell. This strength comes despite Friday’s sharp drop in boxed beef values and a “neutral” Cattle on Feed Report from USDA. Cash cattle did trade Friday at $163 in Kansas, up $2.00 from a week earlier. The futures trend has been higher and traders are optimistic consumer demand will pick up with warmer weather (grilling). At midday, Choice beef is up 1.10 to 245.61 and Select is down .45 to 242.83.

Lean Hog futures are near unchanged but prices are rising with the midday report of a higher pork cutout value. FOB Plant Pork is up .59 to 68.62. Futures remain near contract lows and are desperately seeking a “bottom”.

Corn May +4 389; Dec +4 414 Bean May +14 987; Nov +11 967 Meal May +4 328; Oct +2 318 Oil +57 3125 Wheat May +5 535; Jly +4 538 KC Jly +4 579; MGE +4 598 Oats +5 284 Rice +3 1095

LC Apr +205 16040; Oct +92 15095 FC Mar +110 21597; Apr +225 21845; Aug +240 21847 LH Apr +30 5875; Jun -12 7372 Milk Apr -3 1547; May -5 1506

US$ -.4%

Dow +.2% SP +.1% NAS-.1% Tran -1.4% VIX +2.6% 13.36

WTI +.9% Brent +.9% Gas +.1% NG -3.2% HO steady Eth +2.8% Gold +.1% Slvr steady

5-yr unch 1.416% 10yr -.003 1.927% 30yr +.005 2.509%

Lake Cumberland Livestock Market, Somerset Kentucky Weighted Average Report for 3/21/2015 Cattle Receipts: 1445 Last week: 1594 Last year: 1323 Compared to last week: Steer and heifer calves sold mostly 2.00 to 5.00 higher with good demand for calves under 550 pounds. Yearling steers and heifers mostly steady. Slaughter bulls steady. Slaughter cows 2.00 to 4.00 lower.

This week’s supply included 49 percent that weighed over 600 lbs. 66 percent steer and bull calves 5.0 Holstein steers, 37 percent heifers, 4.6 cows, 1.5 percent bulls of total recorded supply. 50 head of bred cows, 6 cow/calf pairs, 98 head of slaughter cows with 90 percent going to slaughter, 12 head slaughter bulls with 100 percent going to slaughter.

Tagged Post Topics Include: Economics, Market updates