Market Closes - December 2, 2019
Posted on Dec 2, 2019KFB Annual Meeting – December 4-7
Galt House, Louisville, KY
Corn Mar +1 382 (379-85); Jly unch 390
Bean Jan -6 870 (867-883); Jly -5 913
Meal unch 293
Oil -42 3016
Wheat Mar -6 535; Jly -4 539 (537-45)
KC -8 439; MGE -5 510
Oats -3 306
Rice -1 1247
LC Dec -45 12075; Apr -17 12620; Jun +5 11777
FC Jan -12 14215; Apr unch 14497; Aug +25 15127
LH Dec -167 6035; Feb -202 6615; Apr -135 7257
Milk Dec +8 1938; Jan +19 1900
Corn closed steady but other CBOT futures closed lower after mostly positive overnight trade. Soybeans came under pressure from uncertainty about the US/China Phase 1 trade deal (December 15 is important date), and Brazil’s record low currency making US soybeans less competitive. Soybean futures are threatening chart support at the August/September lows. Below that there may be close to 40 cents of price risk. December soybean meal just set new contract lows. Soybean oil futures also look at risk to drop more based on the charts. The spec funds could push the soy complex over the edge, but a potential US/China deal has to be on their mind. Wheat futures dropped today, erasing part of Friday’s huge rally. Wheat has been supported of late due to deteriorating conditions/prospects for many global wheat producers.
Cattle futures closed narrowly mixed, but traded strongly into the close. Last Friday, new highs were set for the current $20+ rally in live cattle futures. Support came from last week’s stronger cash fed market and firmer boxed beef markets. The Kansas beef plant closed by fire is beginning to harvest cattle again. Choice beef edged up .49 to 232.61, while Select gained 2.64 to 212.98. The CH-Sel spread narrowed to 19.63. Fed cattle carcass weights continue to climb as cattle are fed longer, hoping for rising cash prices to match the December LC futures.
Lean Hog futures closed sharply lower, which more than erased Friday’s sharp gains. Uncertainty about the US/China trade negotiation may have encouraged the sellers. FOB Plant Pork ended 1.01 higher at 82.86 as bellies rose 5 pct and ribs gained over six pct. LH futures are only a couple dollars above key chart support.
US$ -.4% 97.86
Dow -268 27783
SP -27 3114
NAS -97 8568
Tran -123 10735
VIX +2.29 14.91 +18%
WTI +77 5591
Brent +43 6092
Gas -2 157
NG +5 233
HO +1 189
Eth unch 141
Gold -3 1469
Slvr -14 1697
2-yr +.002 1.604%
5-yr +.026 1.644%
10yr +.046 1.822%
30yr +.068 2.268%
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