Market Update - March 6, 2015

Posted on Mar 6, 2015
CBOT are trading mostly to the downside following yesterday’s sharp price break. Weighing on the market is a soaring US Dollar (up 1.3%) responding to rising Treasury yields due to today’s surprisingly strong US jobs report. Traders fear that the Federal Reserve will have to raise rates sooner than it has been indicating through FOMC meeting minutes and speeches. Outside markets are also bearish today as energy, precious metals and equity indexes post big losses.

Cattle futures are trading mixed with Feeders outperforming LC given the weaker CBOT. LC futures are benefiting from reports of fed cattle trading at even money with a week ago. Cattle charts, especially for FC, have a positive look. Choice beef is down .21 to 248.99 and Select down .95 to 245.63.

Lean Hog futures are trading lower, following through to the negative price reversal seen Thursday. A strong US Dollar is also negative for LH since so much pork is exported. FOB Plant Pork is up .31 to 68.58.

Corn May -6 384; Jly -6 392; Dec -5 408 Bean May -6 979; Jly -6 984; Nov -7 959 Meal May unch 325; Oct -1 316 Oil -31 3112 Wheat May unch 480; Jly -2 485 KC +3 520; MGE -3 556 Oats -1 285 Rice -9 1050

LC Apr +10 15337; Jun unch 14602; Oct -37 14687 FC Mar +67 20725; May +72 20540; Aug +32 20725 LH Apr -100 6582; Jun -37 8002; Oct -62 6997 Milk Mar -7 1538; Apr -7 1535

US$ +1.3%

Dow -1% SP -1% NAS -.7% Tran -.7% VIX +8.2% 15.19

WTI -2% Brent -.5% Gas unch NG +.3% HO +.5% Eth -3.3% Gold -2.4% Slvr -2.2%

5-yr +.12 1.69% 10yr +.13 2.24% 30yr +.13 2.85%

Kentucky Weekly Livestock Summary for the week of Feb 27-Mar 5, 2015 Receipts This Week Last Week Last Year 12,074 5,135 7,837 Compared to last week Steers and Heifers sold 3.00 to 5.00 higher with a limited comparison available due to the low receipt totals last week. Demand was good to very good for an average to good offering. Weather continued to be a major factor this week. After a week with record cold temperatures and near record snowfall, Kentucky started this session dryer and warmer. However, the week ended with another round of record breaking winter weather. The forecast is for continued warming prompting renewed flood possibilities and some extremely muddy conditions. Slaughter Cows and Slaughter Bulls sold mostly steady.

Supply: Slaughter Cows 7 percent; Slaughter Bulls 1 percent; Feeder cattle 88 percent. In the feeder supply, Steers made up approximately 46 percent and Heifers approximately 38 percent. Steers and Heifers over 600 lbs totaled approximately 57 percent. Replacement cattle 4 percent.

Tagged Post Topics Include: Economics, Market updates