Market Update - September 4, 2013

Posted on Sep 4, 2013
CBOT futures are sharply lower as more selling follows yesterday’s late-day weakness and bearish technical price action.  Soybean and soybean meal futures are probing into the chart gaps left on August 26.  November Soybeans may find support at 13.32. Chicago and KC wheat futures are near key chart support which could break if corn and soybeans weaken more.

The USDA crop ratings released yesterday were very near trader expectations. Maybe the longs expected even sharper drops in the ratings.  As of Sunday, the U.S. Corn crop is rated similar to the 10-year average, while Soybeans have dropped below the long-term average rating.

Cattle futures are seeing follow-through selling from Tuesday on a lack of friendly cash cattle markets or beef prices.

Lean Hog futures are stronger on firm cash hog and pork markets.

Corn Dec -5 470; Mar -5 483

Bean Nov -35 1352; Mar -28 1330 Meal Oct -14 430; Oil -35 4355

Wheat Dec -6 641; JLY -3 657 KC -4 695; MGE -5 720

Oats -1 329

Rice -8 1571

LC Oct -37 12582; Feb -52 13105 FC Sep -82 15635; Nov -85 15905 LH Oct +90 8890; Dec +47 8545 Milk Sep +15 1794; Oct +11 1823

US$ -.3%

Dow +.6% SP +.7% NAS +.8% Tran +.9% VIX -4% 15.95

WTI -.9% Brent -.5% Gas +.1% NG -.6% HO -.2% Eth -3.2%

Gold -1.5% Slvr -4%

5-yr +.01 1.69% 10yr +.01 2.86% 30yr -.01 3.77%

Blue Grass Stockyards Cattle Report for 09/03/2013 Receipts:  1,251   Last Tuesday:  1,196   Year Ago:  1,455 Compared to Monday no sale stockyards-closed for Holiday, however compared to last week most classes sold steady to firm with good demand on a mostly average to good quality offering.  Yearling steers and yearling heifers sold steady compared to last week with very good demand.  Slaughter cows sold steady to firm and slaughter bulls sold steady with good demand. Total supply included 08% slaughter cows, 02% slaughter bulls, less than 01% replacements and 90% feeders.  Feeder supply 42% steers, 76% bulls, 43% heifers with 54% of feeders weighing over 600 lbs.

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Tagged Post Topics Include: Economics, Market updates