Market Update - October 23, 2013

Posted on Oct 23, 2013
Corn and soybean futures are higher on expectations of harvest delays and slow farmer sales – firm cash markets reported. November Soybeans are at the highest level since September 30; watch for resistance at $13.28. An export sale of soybeans to Russia is supportive. The main strength in the soy complex is from Soybean Meal futures with December SM up over 2 percent. Wheat futures are higher with December CBOT Wheat peaking today at Monday’s high. Fundamentals in wheat appear positive so long as corn/bean prices don’t break hard.

In Live Cattle futures, the nearby October is higher on reports of $132/cwt cash trade, up from $129 last week.  Deferred LC are slightly weaker as the next several contracts are already at a premium to the nearby.  Weak financial markets may also have traders nervous.

Lean Hog futures are under pressure amid lower cash hog prices and a bearish seasonal trend.  Today’s trade in December LH is inside yesterday’s range.

The US dollar is near steady, but is near a 9-month low. Some large market firms don’t expect the Federal Reserve to taper its bond buying program until at least March 2014.  Thus Treasury Yields are down slightly, reaching 3-month lows.

WTI Crude Oil continues to drop on larger than expected inventories and weak financial markets.

Corn Dec +5 444; Jly +5 472; Dec14 +5 486 Bean Nov +15 1317; Jly +8 1265; Nov14 +4 1179 Meal Dec +9 425; Jly +4 390 Oil -13 4139 Wheat Dec +4 705; Jly +3 706 KC +7 773; MGE +6 762 Oats +4 345 Rice +16 1544

LC Oct +57 13167; Feb -12 13460 FC Oct -5 16600; Jan -20 16782 LH Dec -55 8802; Feb -55 8997 Milk Oct -1 1824; Nov +9 1855

US$ unch

Dow -.6% SP -.6% NAS -.8% Tran +.2% VIX  +4.7% 13.96

WTI -1.5% 96.84 Brent -1.6% Gas -2% 256 NG +1% HO -2.2% Eth -.6% 181

Gold -.6% Slvr -.7%

5-yr -.02 1.26% 10yr -.03 2.48% 30yr -.03 3.58%

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Tagged Post Topics Include: Economics, Market updates