CBOT future closed mixed. Corn futures managed gains supported in part by the EIA report that ethanol production increased 2.5 pct in the recent period. Ethanol production margins have improved and several plants are being reopened. Ethanol stocks are also low.

Weakness in old-crop soybean futures and soybean meal futures most likely were related to further unwinding of previously-placed bull spreads (buy/sell). A sharp increase in crude oil price supported soybean oil futures as well. China’s soybean purchase activity has been focused on new-crop 2013/14 shipments. Old-crop soybean demand may be at risk in China if the very lethal bird flu there reduces feed demand.

Chicago wheat futures closed lower and lost ground to the KC and MGE markets which face freeze damage and delayed plantings, respectively. MGE futures withstood the government report that Canadian farmers want to seed much more wheat than traders expected -– 26.6 million versus 24.4 million acres.

Warmer and drier forecasts in the 6-14 day period is important for getting field work started and to increase meat consumption by the “grillers”.

Cattle futures closed higher supported by optimism that cash cattle prices will rise and by falling feed costs. Boxed beef values have improved this week -- Choice UP 0.13 at 191.54; Select UP 1.03 at 184.81. Short-covering and technical buying are probably boosting feeder cattle futures.

Lean Hog futures rallied on spillover support from cattle futures and hope for increased demand and pork values as weather improves.

 Corn May +1 639.5; Jly +4 618; Dec +5 528 Bean May -16 1404; Jly -13 1345; Nov -2.5 1194   Meal May -6 406; Oct -2 338   Oil +61 4918 Wheat May -6 692; Jly -3.5 692; Dec -3.5 713.5 KC Jly +1.5 740; MGE steady 801 Oats -6 384 Rice -16 1490

LC Apr +72 12692; Jun +125 12207; Oct +132 12637 FC Apr unch 13375; May +150 14110; Aug +250 15062 LH May +77 8860; Jly +140 9142; Oct +70 8090 Milk May +10 1872; Jun -9 1906

US$ -.1% Dow -43 14676 SP unch 1579 NAS unch 3270 Tran +37 6106   VIX +.13 13.61

WTI +253 9171 Brent +168 10199 Gas +3 275 NG -6 418 HO +5 286 Eth +.5  243.5

Gold +22 1431 Slvr +30 2311

2-yr unch 0.23% 5-yr -.01 0.69% 10yr -.01 1.70% 30yr -.01 2.89% 

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