Market Update - May 17, 2013

Posted on May 17, 2013
CBOT futures are trading little changed beyond the July Corn and Soybean contracts.   Old-crop corn, soybean and soybean meal futures continue to gain on the new-crop contracts due to tight supply conditions.

Chicago and KC wheat futures are lower on technical selling and improved growing conditions.  MGE Wheat continues to gain on KC/CBOT due to delayed planting and emergence.

The US dollar is stronger today and this is weighing on energy, metals and commodities in general.  However, US equities continue to charge higher on the highest level of consumer sentiment in nearly six years.  The Thomson Reuters/University of Michigan's preliminary reading on the overall index on consumer sentiment rose to 83.7 from 76.4 in April, topping economists' expectations for 78.  The Conference Board said its Leading Economic Index increased 0.6 percent to 95.0 last month, the highest level since June 2008.  Economists expected a rise of 0.2 percent.

Cattle futures are weaker ahead of this afternoon’s Cattle on Feed Report. Cash cattle trade has been weak, but Choice Beef has been at/near record highs.

The Dow Jones survey shows the average trade guess at 96.3% on-feed May 1; 112.1% April Placements; and 102.9% April Marketings.

Access the COF Report after 2 pm CDT at http://usda.mannlib.cornell.edu/MannUsda/viewDocumentInfo.do?documentID=1020

Lean Hog futures are slightly higher as this week has seen a strong rally in cash hog and pork values as well as LH futures. Futures are now near the highs posted this spring so further gains may be more challenging without the cash markets leading futures.

 

 

Corn Jly +9 651; Sep unch 554; Dec -3 521 (517-527) Bean Jly +5 1432; Sep +1 1273; Nov -1 1216 (1211-1226) Meal Jly +2.5 417.5; Dec unch 342 Oil -7 4945 Wheat Jly -6 681; Dec -7 706 KC -7 736; MGE -1 803 Oats unch 378 Rice -2 1526

LC Jun -7 11982; Oct -32 12255; Dec -22 12405 FC May -22 13480; Aug -87 14425; Oct -62 14860 LH Jun +17 9305; Aug +17 9107; Oct +25 8080 Milk May -1 1850; Jun -16 1829

US$ +.5% Dow +.4% SP +.5% NAS +.5% Tran +.8% VIX -3.7% 12.58

WTI +.3% Brent +.1% Gas +.5% NG +.7% HO +.5% Eth +1.3%

Gold -1.7% Slvr -1.7%

5-yr +.01 0.80% 10yr +.03 1.91% 30yr +.03 3.13%

Kentucky Weekly Livestock Summary for 10 through 16 May, 2013

Receipts This Week    Last Week  Last Year 20,217        22,275     17,321

Compared to last week:  Feeder Cattle and Calves were steady to 2.00 lower with moderate demand.  Prices continuing to receive pressure from lower futures in both the Live and Feeder Cattle contracts for nearby months, and consecutive weeks of lower Fed Cattle prices.  Most of the seasonal demand for calves to turn out to pasture is behind us as temperatures slowly increase to a level expected for this time of year.Slaughter Cows and Bulls 1.00-3.00 higher as warmer weather fuels the demand for beef.  Historical prices for beef leaves many consumers trading down to ground beef to continue to enjoy their protein of choice.  Historic price levels in tandem with lower cow numbers helps push cull prices higher.

Supply:  Slaughter Cows 10 percent; Slaughter Bulls 3 percent; Feeder cattle 85 percent.  In the feeder supply, Steers made up approximately 37 percent and Heifers approximately 43 percent.  Steers and Heifers over 600 lbs totaled approximately 49 percent.  Replacement cattle 2 percent.

KENTUCKY CASH GRAIN BIDS Click Here

Tagged Post Topics Include: Economics, Market updates