Market Update - September 11, 2012

Posted on Sep 11, 2012
  Outside markets are friendly to commodities but CBOT futures are lower ahead of tomorrow’s key USDA crop reports.  Large spec funds are cutting their long positions to lower their risks. One might expect increased volatility later today and overnight as traders adjust their positions before the 830 am ET reports.

  Live Cattle futures are trading higher on hopes for stronger prices from the packers this week. Monday’s boxed beef markets were mixed with Choice up and Select down.

  At Blue Grass Monday, the 400-600 lb feeders were up strongly compared to last week’s market.  See report at the bottom.

  Lean Hog futures are lower today with 2012 contracts giving back Monday’s unexpected gains and adding to 2013 contracts’ losses.

  Financial markets are looking at key decisions out of the German Constitutional Court on Wednesday and the U.S. Federal Reserve’s OMC on Thursday.   The German court needs to allow Germany to support the European Stability Mechanism in order for increased relief for the countries with sovereign debt problems.   Opinions are mixed as to how much monetary easing could come from the FOMC on Thursday.

  Risk-on trade today is pressuring bond prices and raising Treasury interest rates.

Corn Dec -3.5 780 (778-788); Mar -3.5 784; Jly -2 769

Bean Nov -9 1710 (1702-1729); Mar -9 1653; Jly -9 1544   Meal -2 519   Oil -34 5580

Wheat Dec -4 886; Jly -3 863     KC unch 904;  MGE -1 934

LC Oct +75 12650; Feb +22 13250

FC Sep +10 14505; Nov +35 14842; Mar +42 15280

LH Oct -30 7227; Feb -105 7702

Milk Sep -3 1875; Oct +9 1910

Oats unch 387

Rice -8 1469

 US$ -.6%

Dow +.7%  reach highest level since December 2007.

SP +.5%

NAS +.3%

Tran +.8%

 VIX -2.5% 15.88

WTI +.6%

Brent +.2%

Gas +.5%

NG +5%

HO +.4%

Eth -.4%

Gold +.3%

Slvr +.3%

5-yr +.026 0.665%

10yr +.050 1.704%

30yr +.053 2.859%

 Blue Grass Stockyards Cattle Auction Report for 09/10/2012 Receipts:  1,274   Last Monday:  Holiday   Year Ago:  1,869

   Compared to last Tuesday, steer calves sold 2.00 to 5.00 higher with very good demand, advance on 400-600 lbs with active farmer participation for fall grass cattle placements.  Heifer calves sold steady to 2.00 higher with good demand.  Bull calves 5.00-10.00 higher for 400-600 lbs with cooler weather conditions and active farmer participation improving market demand.  Yearling steers sold steady to 1.00 higher with good demand in a light test.  Yearling heifers sold steady in a light test. Slaughter cows sold steady to weak with good  demand. Slaughter bulls sold steady with good demand.

   Total supply included 06% slaughter cows, 02% slaughter bulls, less than 1% replacements and 92% feeders.  Feeder supply 49% steers, 19% bulls, 31% heifers with 53% of feeders weighing over 600 lbs.

 

 

Tagged Post Topics Include: Economics, Market updates