Market Update - May 16, 2013

Posted on May 16, 2013
Corn and wheat futures are trading down by over one percent while soybean futures are rallying. Corn is under pressure from disappointing export sales this morning and a perceived advancement in the corn planting pace. CBOT Wheat is lower today following yesterday’s sharp losses. The global wheat supply-demand situation is not problematic like the corn and soybean segments.

The U.S. continues to crush more soybeans than expected given USDA’s season total forecast. However, corn futures are not getting a boost from the corn grind required by a strong ethanol industry. Yesterday's ethanol data showed production was up 14,000 barrels per day to 857,000 barrels. Ethanol stocks came in 16.4 million barrels down 400,000 barrels from a week ago.

Cattle futures are trading just slightly lower but are near chart support levels. While CHOICE beef set a new record-high again yesterday at $208.18, fed cattle prices are yet to show strength. This has created an operating profit for the beef packers. Traders will prepare for Friday afternoon’s Cattle on Feed report which is expected to show: On-feed at 96.3%, placements of 112.1%, and marketings at 102.9%.

In contrast to cattle futures, Lean Hog futures are trading much higher and continue to test the upper end of the 3-month trading range. The Pork Cutout jumped yesterday by $1.02 to $91.93/.cwt. Picnics, loins and bellies have risen in value this week.

Poor U.S. economic data today is weighing on the US dollar’s value and supporting Treasury prices leading to falling yields (that have been strengthening before this week).

Corn Jly -6.5 644; Sep -5 558; Dec -4 527 Bean Jly +15.5 1428; Sep +9 1272; Nov +9 1219   Meal Jly +5 415; Dec +3 342   Oil +32 4945 Wheat Jly -9 685; Dec -8 710    KC -10 742; MGE -1 797 Oats unch 379 Rice +7 1530

LC Jun +10 12010; Oct +7 12300; Dec -2 12445 FC May -20 13487; Aug -27 14502; Oct -37 14897 LH Jun +120 9312; Aug +80 9130; Oct +95 8120 Milk May unch 1850; Jun +9 1820

US$ -.1% Dow +.1% SP +.1% NAS +.3% Tran +.3%   VIX +.2% 12.84

WTI +.9% Brent +.3% Gas +1.2% NG -3.3% HO +1.2% Eth -.4%

Gold -.8% Slvr -.5%

5-yr -.05 0.78% 10yr -.06 1.87% 30yr -.07 3.09%

ECONOMIC REPORTS     The Labor Department said the Consumer Price Index slipped 0.4 percent, the biggest decline since December 2008.  Analysts had expected a more modest 0.2 percent decline in last month's prices.  In the 12 months through April, consumer prices rose 1.1 percent. That is well below the Fed's 2 percent inflation goal.   Weekly jobless claims rose an unexpected 32,000 to 360,000, according to the Labor Dept.   Housing starts fell 16.5 pct in April to a rate of 853,000, well below expectations of 945,000.

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Tagged Post Topics Include: Economics, Market updates