Market Update - May 6, 2014

Posted on May 6, 2014
CBOT buyers took the night off and let prices slide lower.  But when trading reopened at 830 am CT, prices rallied sharply.   This rally has continued through the morning for corn and wheat, but ended about 9 am for the soy complex. Traders fear that imported soybeans will erode the premium prices which old-crop futures have predicted. Also if corn planting continues at a slow pace, more acres will switch to soybeans and hurt new-crop prices.

The weather continues to support corn and especially wheat futures.  Planting will be slow and the KS/OK/TX wheat crop is going downhill with rain only expected in the eastern part of KS/OK. Chartwise, KC and Chicago wheat are testing Monday’s highs and MGEX wheat broke out to a new high.  KC and MGEX are outrunning CBOT wheat.

Cattle futures are trading higher and near the day’s highs. There’s little news in the market to base the strength on.

Lean Hog futures are trading mostly higher but the nearby May contract is pressured by wholesale pork values that are down at midday by over 3 cents/pound due to losses in loins and hams.  June LH is building on its premium to cash and the May LH contract. Traders may fear the supply may be more limited by PEDv than anticipated.

A weaker US dollar is supportive to commodity futures today.

Corn Jly +7 515; Dec +7 507 (494-508)

Bean Jly -9 1454; Nov -4 1223 (1216-28);

Meal Jly -5 474; Oct -4 389

Oil +10 4127

Wheat Jly +10 739 (724-39)

KC +19 851; MGE +20 809

Oats +3 355

Rice +2 1553

LC Jun +97 13850; Oct +82 14230

FC May +180 18445; Aug +225 19205

LH May -20 11670; Jun +180 12415; Oct +57 10457

Milk May -6 2275; Jun -8 2135

US$ -.5%

Dow -.4%

SP -.4%

NAS -.5%

Tran +.2%

VIX +.7% 13.39

WTI +.7%

Brent unch

Gas -.1%

NG +2%

HO -.1%

Eth -2%

Gold -.1%

Slvr +.4%

5-yr unch 1.68%

10yr -.014 2.595%

30yr -.02 3.39% 

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Tagged Post Topics Include: Economics, Market updates