Market Update - September 14, 2012

Posted on Sep 14, 2012
  Outside markets are all about the follow-through effects of Thursday’s announcement by the Federal Reserve to buy (print money) $40 billion of mortgage-backed securities every month until after the unemployment rate comes down.  Traders and investors view this monetary easing program as inflationary.  Gold and silver soared yesterday, but are weaker today.  The U.S. dollar index hasn’t been this low since the end of April 2012.   CBOT futures are trading higher on the outside market support and general tight supply-demand fundamentals.  The monetary easing is supportive to commodity prices in general.   Live Cattle futures are trading mixed with support coming from this week’s $1-3/cwt gain in fed cattle prices.   However, feeder futures are lower due to rising feed costs.   Lean Hog futures are trading higher with the big gains coming in the deferred contracts due to rising feed costs.  Traders remain optimistic that the cash hog market will improve soon.    Since the Federal Reserve will buy mortgage securities and not Treasury notes/bonds, the Treasuries are selling off and rates are rising as fear rises about inflation.  Consumer Sentiment in September rose to 79.2 from 74.3 in August.   Also business inventories had their biggest gain in six months, increasing .8% to a record $1.59 trillion. The gain compared to an expectation of only 0.3%. Growing inventories adds to the measure of GDP.

Corn Dec +10 784; Mar +10 788; Dec’13 +3.5 658.5

Bean Nov +5 1752; Mar +10 1715; Nov’13 +14 1405   Meal -.7 528.7   Oil +55 5756

Wheat Dec +25 927; Jly +11 889   KC +22 945; MGE +15 978

LC Oct +2 12757; Feb +10 13295

FC Sep +10 14510; Nov -27 14837; Mar -75 15235

LH Oct +32 7387; Dec +122 7360

Milk Sep +2 1890; Nov +34 2035

Oats +5 397

Rice +21 1530

US$ -.6%

Dow +.5%

SP +.6%

NAS +1.2%

Tran +.4%

 VIX +1.6% 14.28

WTI +.7%

Brent +1%

Gas +2.2%

NG -2.4%

HO +1%

Eth +.4%

Gold +.2%

Slvr -.6%

5-yr +.058 0.704%

10yr +.124 1.845%

30yr +.135 3.062%

 

Tagged Post Topics Include: Economics, Market updates