Market Update – August 21, 2015

Extreme losses in energy and U.S. equities are weighing on commodity futures despite a weaker U.S. dollar. Traders and investors are growing more concerned about China’s economy and its impact on global economic conditions. Note the VIX is up sharply, indicating the “fear” in the equity market. Big losses in equity portfolios can lead to some liquidation of futures positions due to margin calls. The 10-year Treasury Bond’s yield hasn’t been this low since April; support comes in at 1.85-1.87%.

Technically, corn futures are charting “outside down” days with bearish implications. Soybean futures remain above yesterday’s lows but soybean oil, as well as KC and MGEX wheat futures, are hitting new contract lows.

Cattle futures are down sharply with limit-down losses in Feeder Cattle contracts due to sell-stops being hit. Choice Beef is down 1.69 to 244.77 and Select is down .76 at 234.82.

Lean Hog futures are also trading much lower with pressure coming from pork values and the drop in cattle futures. FOB Plant Pork is down 1.52 to 85.78/cwt due to sharp losses in the value of ham and bellies. The cutout is down from 90.12 on August 18.

Corn Sep -6 365; Dec -6 376; Dec16 -4 399
Bean Sep -14 907; Nov -15 892 (hi 907); Nov16 -11 885
Meal -2 329
Oil -79 2719
Wheat Sep -9 497; Jly -11 509
KC -13 468; MGE -10 503
Oats -8 213
Rice +1 1165

LC Aug -145 14502; Dec -222 14625
FC Aug -165 21155; Oct -450 limit 20232
LH Oct -115 6360; Dec -130 6000
Milk Sep +1 1694

 
US$ -.7%
Dow -1.6%
SP -1.65%
NAS -1.8%
Tran -1.8%
VIX +22.2% 23.39

WTI -2.4%
Brent -2.4%
Gas -2.2%
NG -2.8%
HO -2.2%
Eth -1.6%
Gold +.6%
Slvr -1.5%

5-yr -.054 1.434%
10yr -.037 2.047%
30yr -.002 2.750%

Tagged Post Topics Include: ,

Leave a Reply

Your email address will not be published. Required fields are marked *