Market Closes - February 18, 2020
Posted on Feb 18, 2020Corn Mar +5 383 (378-83); Jly +5 390; Dec +4 393
Bean Mar -1 892 (889-98); Jly -1 914; Nov -1 921
Meal +1 292
Oil -9 3048
Wheat Mar +24 567; Jly +21 562 (546-66)
KC +20 486; MGE +14 540
Oats +7 303
Rice +10 1343
LC Feb +60 12142; Jun +20 11220; Aug +22 11070
FC Mar +77 13930; May +57 14377; Aug +110 15130
LH Apr +120 6550; Jun +47 8137; Aug +25 8200
Milk Feb -2 1697; Mar -4 1697
After the 3-day weekend, strong buying showed up for wheat and less so for corn futures. On Friday, traders pushed futures down to the lower end of the range; today, those spec funds reversed their thinking in corn and wheat. Wheat was supported by concerns for the Australian crop getting smaller (smallest since 2008), and then by technical buying as resistance levels were exceeded. Corn futures followed wheat’s rally, just to a lesser extent. Soybean futures couldn’t maintain higher prices as estimates grew for Brazil’s and Argentina’s crops.
Commodity markets were supported by news that China plans to waive tariffs on nearly 700 items beginning March 2 as they prepare to hopefully make purchases as directed by the US-China Trade deal. Tariff exemptions will last one year and be for a defined quantity per importer. It’s uncertain how the coronavirus situation may reduce or delay such Chinese purchases.
Cattle futures closed higher on narrow-range trade, but in the upper part of Friday’s wide range. Although boxed beef fell today, last week’s gains were supportive. April LC closed higher for the fourth straight day with futures about $4.00 above last week’s low. Last week, cash steers averaged $2-3/cwt below the prior week. Choice beef dropped 1.13 to 206.13 and Select lost 2.45 to 203.73.
Lean hog futures closed higher with nearby April LH up two percent. The Chinese tariff relief news was supportive as pork value jumped sharply. FOB Plant Pork surged 2.15 to 65.01. Ham value rose over 10 percent, loins gained over 3 percent and belly value rose 2.5 percent.
US$ +.3% 99.45
The US$ Index is near its last peak set in September 2019. The US$ had not been this high since May 2017. The 2017 peak was 103.8. The US$ bottomed near 70.7 in 2008 when the economic crisis occurred. See Chart at https://www.tradingview.com/symbols/TVC-DXY/
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Gold +18 1604
Slvr +42 1815
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30yr -.032 2.011%
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