Market Closes – February 29, 2016

CBOT futures closed little changed on this last day of February. Soybean meal and soybean oil price moves offset each other. The March Soybean contract touched its last low of 8.52 set January 6; the contract low is 8.47. May Soybean traded within 6.5 cents of its contract low. Corn futures also are within pennies of the contract lows. Fundamentally, global supplies are plentiful and trendline yields will keep it that way. Tomorrow begins a new month and may see the speculative funds increase their trading activity. The futures markets are at risk of hitting “sell-stops”.

February LC moved to a new high (for this move off December’s contract low) on its final day of trading. April LC becomes the nearby contract tomorrow. Cattle futures closed mixed with support coming from last Friday’s cash market strength and firm boxed beef values. Choice carcasses closed down 0.51 at 217.16; Select up 0.85 at 212.84.

Lean Hog futures closed lower in the nearby contracts and higher in deferred contracts. Some pressure came from narrowing packer margins although cash hog prices weakened today as the pork cutout gained. FOB Plant Pork gained .84 to 74.96, compared to a gain of 1.06 at midday. April LH is about $3.00/cwt premium to the last CME LH Cash Index. It has closed lower the last three trading days, but is only down $1.35.

BEGINNING TODAY – CME Livestock Futures and Options will trade 8:30 a.m. to 1:05 p.m. Central Time, Monday through Friday. The extended trading hours till 4:00 p.m. have been discontinued.

The U.S. equity markets reversed strong midday gains to close strongly lower. Reportedly, pressure came from “end of month” selling. Some U.S. economic activity metrics came out worse than expected.

Corn May -2 357; Jly -2 362; Dec -2 376
Bean May -2 861; Jly -2 867; Nov -2 873
Meal +2 262
Oil -36 3087
Wheat May +1 453; Jly +1 460
KC +3 457; MGE -1 489
Oats -1 183
Rice +10 1078

LC Apr -2 13697; Jun +22 12617; Aug -22 12115
FC Mar -50 15815; May +65 15805; Aug +77 15722
LH Apr -87 6997; Jun -10 8075; Aug +5 7982
Milk Mar +10 1376; Apr +5 1355

 

US$ +.2%
Dow -123 16516 (high 16726)
SP -16 1932 (high 1958)
NAS -33 4558
Tran -60 7345
VIX +.74 20.55 +3.7%

WTI +112 3390
Brent +87 3597
Gas +3 132
NG -9 170
HO +3 110
Eth -1 139
Gold +19 1239
Slvr +21 1492

2-yr -.019 0.782%
5-yr -.023 1.217%
10yr -.026 1.738%
30yr -.020 2.616%

Lexington Auction
Weighted Average Report for 02/29/2016
Receipts: 849 Last Week: 965 Year Ago: 539
****Lexington Monday cattle sales now conducted at Mt. Sterling sale barn due to massive fire that destroyed Lexington sale barn on Sat. January 30.
Tomorrow’s Lexington Tues. sale will be held at Richmond sale barn****

Compared to last Monday steer and heifer calves sold mostly steady except 400-500 lbs sold 3.00 higher with good demand and featherweight heifers were 10.00 higher with very good demand. Quality was average through good. Slaughter cows sold steady to 1.00 lower with moderate demand and slaughter bulls sold steady with moderate demand.

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