Market Closes - March 9, 2020
Posted on Mar 9, 2020Corn May -3 373; Jly -4 375; Dec -5 376 (374-78)
Bean May -21 870; Jly -21 879; Nov -19 886 (884-900)
Meal -5 300
Oil -121 2754
Wheat May +3 519; Jly +2 519 (506-22)
KC -5 441; MGE -4 521
Oats -1 267
Rice -17 1274
LC Apr -290 10285; Aug -300 limit 9807; Oct -300 10320
FC all contracts down 450 daily limit
Mar 12620; May 12665; Aug 13400; Oct 13620
LH Apr -292 6300; Jun -240 7735; Aug -270 7810
Milk Mar -5 1632; Apr -23 1580
The markets closed sharply lower – hit by a combination of rising COVID-19 cases in America and elsewhere and a collapse in the crude oil future markets. The crude price crash also helped drive equity prices lower; the crash resulted from an expected oil price war initiated by Saudia Arabia and aimed at Russia for not agreeing last week to production cuts. Fear of recession in major economies added to the market downturn.
Soybean oil futures led the soybean market lower as soybean oil fell in sympathy with crude oil. Nearby March soybean oil fell to a new contract low – below last May’s low. Corn bounced back from its lows set early in the trading day. Wheat recovered even stronger than corn on the weaker US Dollar.
Cattle futures close at or very close to down the daily trading limits -- $3.00 in Live Cattle and $4.50 in Feeder Cattle. Choice beef slipped .11 to 207.36 and Select dipped .25 to 202.32. Given the wealth destruction in the equity markets and recession fears, there was little to support this market. LC and FC opened limit-down, then rallied after 9:00 am CT before testing limit-down by 10:00 am.
Lean Hog futures also closed sharply lower although not limit-down. LH found support from this morning’s report that China’s pork imports were up in January and February. FOB Plant Pork gained 1.09 to 67.95 with 3% gains in the values of ribs and bellies.
US$ -1.1% 95.05
Dow -2014 23851
SP -226 2747
NAS -625 7951
Tran -873 8083
VIX +12.5 54.46
WTI -1104 3024
Brent -1181 3346
Gas -27 112
NG +11 182
HO -24 115
Eth -1 123
Gold +8 1681
Slvr -33 1688
2-yr -.092 0.385%
5-yr -.074 0.480%
10yr -.165 0.542%
30yr -.217 0.998%
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