Market Update - May 15, 2013Posted on May 15, 2013
Wheat futures are trading lower with Chicago down the most and MGE Spring Wheat down the least due to planting challenges in the northern Plains.
Outside markets are negative for commodity prices as the US dollar is stronger and energy futures and metals are lower. Today’s US economic reports were mostly negative (see bottom of message) but the stock market has rallied to new record highs for the Dow and SP500 indexes.
Cattle futures are mostly lower following Tuesday’s rally. Although boxed beef is very strong, cash cattle prices are yet to follow beef higher. Choice boxed beef set a new record high Tuesday at $206.09. Retailer buying for the Memorial weekend could begin winding down and slaughter is expected pick up. There is also a Cattle on Feed Report on Friday, so traders will be positioning for that. Funds are long Live Cattle futures.
Lean Hog futures are little changed today following Tuesday’s huge rally on stronger cash hog prices and pork values.
Corn Jly +2 655; Sep -1 569; Dec -1 537 Bean Jly -2 1412; Sep -1 1266; Nov +1 1215 Meal Jly -2 410; Dec +1.5 341 Oil -18 4958 Wheat Jly -9 702; Dec -8 727 KC -6 761; MGE -2 804 Oats -6 378 Rice -13 1523
LC Jun unch 12077; Oct -42 12327 FC May -20 13530; Aug -70 14572; Oct -57 14975 LH Jun +27 9287; Oct +5 8130 Milk May +3 1852; Jun +17 1798
US$ +.4% Dow +.1% SP +.2% NAS +.2% Tran +.9% VIX +.8% 12.87
WTI -1.7% Brent -.9% Gas -1.7% NG +.9% HO -1.4% Eth -.5%
Gold -2.3% Slvr -3.4%
5-yr -.02 0.84% 10yr -.03 1.94% 30yr -.03 3.16%
Today’s Economic Reports The Labor Department said on Wednesday its seasonally adjusted producer price index fell 0.7 percent last month, the biggest decline since February 2010. Economists expected a 0.6 drop. In the 12 months through April, wholesale prices were up only 0.6 percent, the smallest increase since July last year. Prices had increased 1.1 percent in March.
Industrial production dropped by 0.5 percent last month after a revised 0.3 percent increase in March, the Federal Reserve said on Wednesday. Economists expected output to decline 0.2 percent in April.
Home builders' confidence rose in May more than expected, with sales expectations rising to the highest level in more than five years, according to the National Association of Home Builders.
Blue Grass Stockyards Cattle Report for 05/14/2013 Receipts: 1,276 Last Tuesday: 1,437 Year Ago: 1,033
Compared to Monday, steer calves sold mostly steady, except 600-700 lbs firm undertone with good demand on a good through attractive quality offering. Heifer calves sold mostly steady, except 400-500 lbs 2.00 higher with good demand on a good through attractive quality offering. Yearling steers no comparison with yesterday, however compared to last week sold 2.00 to 3.00 lower in a light test. Yearling heifers no test. Slaughter cows and slaughter bulls sold steady with good demand.
Total supply included 05% slaughter cows, 01% slaughter bulls, 01% replacements and 93% feeders. Feeder supply 46% steers, 15% bulls, 39% heifers with 57% of feeders weighing over 600 lbs.
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