CBOT corn and soybean futures closed higher, with the biggest gains coming in the nearby contracts.  Market support was credited to strong cash basis levels on slow farmer sales and concern that parts of the Midwest are not getting enough rain to maximize soybean yields.  Although it’s too early to forecast it, some market bulls mention an early frost as reason for price to not fall.  Today’s 2-week outlook won’t change their minds.  The 6-14 day NWS maps show below to much-below-normal temperatures.  CLICK FOR MAPS.  The crops’ late maturity this year makes cool temperatures a consideration.

Wheat futures did not follow corn higher as other countries are getting most of the wheat export sales. Fortunately, CHINA has been big buyer of U.S. soft red winter wheat for 2013/14.  The US Wheat Associates’ newsletter states that as of July 26, China had purchased 3.58 MMT of US wheat, or 28 percent of total US wheat sales (China historically has accounted for 2 percent).  USDA forecasts total China imports at 8.5 MMT, the largest since 1995/96’s 12.5 MMT.

Cattle futures shot higher in reaction to news that after September 6 Tyson will not accept slaughter cattle fed Zilmax.  Several questions remain about the effect of this on beef production and additional feed demand.  Read the CME Group’s newsletter at http://www.dailylivestockreport.com/documents/dlr%2008-08-13.pdf

Lean Hog futures closed higher but well of the daily highs caused by the sharp gains in the Cattle futures pit. The next two months will be interesting as we see how the $15+ difference between today’s cash market and October LH futures resolves itself. Corn Sep +5 473.5; Dec +1.5 460; Jly +2.5 487 Bean Sep +29 1228 (1199-1233); Nov +18.5 (1165-1190) Meal Sep +16 393; Dec +9 357 Oil +1 4175

Wheat Sep -2 641; Dec -2 654; JLY -1.5 668 KC +3 702; MGE -3 733

Oats +10 362 (+22 cents in 2 days) Rice -6 1528

LC Aug +145 12267; Oct +232 12700 (hi 12767) FC Aug +167 15425; Oct +170 16052; Jan +92 15987 LH Aug +40 10062; Oct +32 8525 Milk Aug +2 1814; Sep +25 1839

US$ -.3%

Dow +28 15498 SP +7 1697 NAS +15 3669 Tran +52 6521 VIX -.25 12.73

WTI -53 10384 Brent -73 10671 Gas unch 287 NG +7 332 HO -.5 296 Eth -.5 218

Gold +27 1312 Slvr +72 2022

2-yr unch 0.32% 5-yr -.01 1.36% 10yr -.02 2.59% 30yr -.01 3.68%

Blue Grass Stockyards Cattle Weekly Summary Report for the week ending 8/8/13

Receipts:  2,243   Last Week:  1,800   Year Ago:  986

Compared to last week:  Steer and Heifer calves sold mostly steady, with instances 5.00 higher on 300-400 lbs calves.  Feeder Steers and Heifers 1.00-3.00 higher.  Demand moderate to good for calves with an increased demand for those 300-400 lbs.  Demand good to very good for yearling type Feeder cattle.  Supply this week included several consignments of high quality feeders in thin flesh.  Continued favorable weather has pushed corn futures lower and this remains supportive to cattle prices.  Slaughter Cows and Bulls steady to 2.00 lower.

Total supply included 7% slaughter cows, 02% slaughter bulls, Less than 01% replacements and 91% feeders.  Feeder supply 49% steers, 16% bulls, 35% heifers with 63% of feeders weighing over 600 lbs.

KENTUCKY CASH GRAIN BIDS – Click Here