Market Update - September 3, 2013

Posted on Sep 3, 2013
The CBOT has had a volatile first-half of day with the sharp overnight gains severely cut down now. Soybean futures have managed to hold onto large gains, but corn and wheat futures are now down sharply thus charting bearish “outside down” days.  Early strength was tied to limited rainfall and coverage over the 3-day weekend and a pretty dry forecast for the next week. As prices sit now, the big funds are making lots of money as they are long soybeans and short corn futures.

Attention will begin to focus on the September 12 Crop Production Report.  However, tonight’s USDA Crop Condition Report could offer some insight into how recent weather has impacted crops.

Live Cattle futures are trading firm while feeder futures are up strongly on the CBOT drop.  The large funds are long live cattle futures and will work to defend October Live Cattle chart support near $126.50. Seasonal strength should favor improved prices but October is already at $3-4/cwt premium to the cash market.

The delay in the United States making a decision on Syria has drove money out of Treasuries and into equities.  Treasury yields are up sharply, but the stock market has backed off its early gains.  The SP500 at 1639 was as high as 1651. Crude oil is on the rise after being weaker yesterday.

Corn Dec -10 472 (472-494); Mar -10 485 Bean Nov +26 1384 (1378-1408); Mar +21 1355 Meal Oct +13 442; Mar +10 423 Oil +3 4400

Wheat Dec -7 647; JLY -8.5 658 (658-677) KC Dec -5 698; MGE -4 726

Oats Dec -9 331

Rice unch 1575

LC Oct +35 12715; Feb +35 13200 FC Sep +117 15810; Jan +65 15925 LH Oct +20 Feb +5 8655 Milk Sep -3 1780; Oct -17 1802

US$ +.1% Dow +.1% SP +.4% NAS +.7% Tran steady VIX -.1% 16.99

WTI +.5% Brent +1% Gas -.4% NG +1.9% HO +.5% Eth +4.7%

Gold +.6% Slvr +4%

5-yr +.06 2.71% 10yr +.10 2.89% 30yr +.10 3.81% KENTUCKY CASH GRAIN BIDS Click Here

Tagged Post Topics Include: Economics, Market updates