Market Update - May 7, 2014

Posted on May 7, 2014
CBOT futures are trading lower after near steady prices overnight.  Futures dropped when 830 am e-trade began.  Only wheat futures have been able to fully recover from this drop.   Fundamentals remain the same with weather helping corn planting and hurting potential yields in HRW wheat.  Imported Brazilian soybeans and meal have the funds moving out of old-crop futures.  USDA will update the supply-demand forecasts midday Friday.

Cattle futures have had a volatile trading day with a nice rally at 8 am and a collapse at 10 am.  Yesterday’s weak beef markets are weighing on cattle prices.

Nearly 4 cent/lb losses in the pork cutouts on Tuesday are weighing on lean hog futures.  LH futures have traded somewhat narrow ranges today.  The June LH contract seems to have some support at $122/cwt.

Equity markets are trading mixed with money coming out of NASDAQ high-fliers.  Indications that Putin is interested in a solution to the Ukraine situation is supportive to financials.

Corn Jly -5 508; Dec -4 505

Bean Jly -16 1448; Nov -8 1217

Meal Jly -4 473; Oct -3 389

Oil -15 4096

Wheat Jly -4 734; Dec -5 756

KC -6 840; MGE -1 803

Oats -2 357

Rice unch 1556

LC Jun -62 13767; Oct -32 14192

FC May -42 18305; Aug +20 19145

LH May -80 11525; Jun -117 12205

Milk May +25 2295; Jun +48 2157

US$ +.1%

Dow +.6%

SP +.3%

NAS -.7%

Tran +.2%

VIX -1.2%  13.64

WTI +1.4%

Brent +.7%

Gas +1%

NG -1.2%

HO +.9%

Eth +1.4%

Gold -1.2%

Slvr -1.4%

5-yr -.03 1.65%

10yr -.01 2.59%

30yr +.015 3.396%

Blue Grass Stockyards Cattle Report for 05/06/2014 Receipts:  1289   Last Tuesday:  1155   Year Ago:  1437

Compared to Monday’s sale steer calves sold steady to 2.00 higher with very good demand. Heifer calves sold steady except 400-500 lbs 3.00 higher with very good demand.  Quality was good through attractive.  Yearling steers and heifers no comparison with yesterday however compared with last week sold 3.00 to 4.00 higher with very good demand.  Slaughter cows and slaughter bulls sold steady with good demand.

Total supply included 06% slaughter cows, less than 01% slaughter bulls, less than 01% replacements and 92% feeders.  Feeder supply 43% steers, 12% bulls, 45% heifers with 58% of feeders weighing over 600 lbs. 

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Tagged Post Topics Include: Economics, Market updates