Market Closes – August 6, 2014

CBOT futures closed higher with WHEAT lifting all boats today. Corn and soybean futures saw buying at the end of the day to put the closing prices at/near the highs. Wheat futures closed 4-6 cents off the day’s highs that were set in the morning. Chicago Wheat futures have a positive technical outlook and there are some fundamental factors adding support. Fund short-covering is building momentum.

There’s three more trading days before the USDA Crop Production Report is released. Beneficial rains are predicted the rest of the week in the southern part of the Corn Belt – if realized, it could cap the corn/bean rally going into the USDA report.

Cattle futures closed narrowly mixed as traders wait for feedlot trade to get reported. Boxed beef did close weak today. Choice down 1.30 at 261.97; Select down 0.98 at 255.77.

Lean Hog futures closed slightly higher after rising and falling a couple times throughout the trading day. Futures’ discount to cash is supportive, but pork values worked on lowering the cash price. FOB Plant Pork dropped 1.65 to 126.31/cwt.

In response to the US and the EU increasing economic sanctions on it, Russia is responding by bans on certain agricultural imports. U.S. poultry is the latest commodity banned by Russia. According to Reuters/AP, Russia imported $1.3 billion in U.S. food and ag products last year.

Investors have been buying US Treasuries and the 10-year yield has dropped to levels last seen in May. Poor economic reports from Europe and rising tensions with Russia encourage the “risk-off” trade.

Corn Sep +7 363; Dec +7 374; Dec’15 +5 415
Bean Sep +15 1096; Nov +14 1080; Nov’15 +13 1086
Meal +5 361
Oil +29 3586
Wheat Sep +15 568; Dec +14 587; Jly +12 624
KC +13 656; MGE +14 643
Oats +6 366
Rice -5 1262

LC Aug +10 15855; Feb +20 15635; Apr -25 15550
FC Aug +7 22132; Oct -7 21997; Mar +25 21137
LH Aug +55 11640; Oct +52 10220; Feb +57 9077
Milk Aug +11 2174; Sep +22 2171

US$ -.1%

Dow +14 16443
SP unch 1920
NAS +2 4355
Tran -50 8010
VIX -.50 16.37 -3%

WTI -54 9684
Brent -4 10457
Gas +3 274
NG +5 395
HO +3 288
Eth +1 198
Gold +22 1306
Slvr +21 2004

2-yr -.008 0.460%
5-yr -.016 1.648%
10yr -.014 2.469%
30yr -.008 3.270%

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