Today’s financial and commodity markets have been extremely volatile with huge losses posted earlier this morning. The market’s worry about China’s economy and the risk of global economic problems carried over the weekend and was magnified by traders selling financial futures. Once the NYSE opened, buying came in to stabilize the markets which has also benefitted some of the commodity markets. With the VIX at 33, market uncertainty and risk remains very high, so you should expect more market volatility in the days ahead.

CBOT futures were hit hard by the financial selloff but have recovered extremely well even though soybean and soybean oil futures still are down sharply on the day. Soybean oil (down nearly 4%) is probably suffering from crude oil’s sharp losses.

Cattle futures are down sharply, especially in Feeder Cattle, due to last Friday’s sharp drop and today’s financial market losses which could trim demand. Friday’s Cattle on Feed Report was neutral. October LC and FC contracts hit new contract lows. Choice down 1.56 at 244.90; Select 1-3 dn 0.70 at 234.88.

Lean Hog futures are bucking the bearish trend today, posting bullish reversals. Fob Plant Pork is up .39 at 88.07. Also supportive is LH futures’ discount to the cash LH Index.

Corn Sep +3 368; Dec +3 380 (low 365) Bean Sep -9 896; Nov -12 878 (low 855) Meal unch 327 (low 320) Oil -90 2646 (low 2538) Wheat Sep +2 501; Jly unch 513 (low 503) KC +3 474; MGE +2 504 Oats -5 209 Rice -20 1144

LC Aug -92 14450; Oct -185 14200; Feb -197 14402 FC Aug -132 21067; Oct -440 19507; Jan -357 18765 LH Oct +155 6437; Dec +140 6040; Milk Sep -18 1660; Oct -29 1652

 

US$ -1.7% Dow -1.4% SP -1.4% NAS -.8% Tran -1.8% VIX +17% 33

WTI -4.3% Brent -4.6% Gas -4% NG -.3% HO -3.2% Eth -1.2% Gold steady Slvr -2.6%

5-yr -.033 1.404% 10yr -.024 2.026 30yr -.006 2.738%