Market Closes - December 10, 2014

Posted on Dec 10, 2014
CBOT futures closed lower with the soy complex leading prices downward despite no bearish surprise in the WASDE report released at Noon Eastern. The funds were reportedly sellers across the board.

USDA lowered 2014/15 carryouts by 10 million bushels for corn to 1.998 billion bushels and by 40 million for soybeans to 410 million bushels. Chinese export demand is key to this figure. While USDA didn’t change its South American soybean production forecast, Brazil did raise its yield forecast by 2 bu/acre. This weighed on soybean futures. Season-average farm prices were left unchanged from the November WASDE. The wheat carryout was raised 10 million bushels to 654 million. The World Wheat carryout estimate was higher than the trade expected; Canada recently raised its production estimate.

Cattle futures closed mostly lower but well off the day’s lows. With negative prices hitting the grains and the equity markets, traders are probably being cautious. Choice Beef is down .56 to 249.95 and Select is up .27 to 236.37.

Lean Hog futures closed pit trade mostly higher but drifted to the negative side in afternoon trading. Cash hog quotes and pork were weak. FOB Plant Pork dropped 1.16 to 92.29 with a 6 pct decrease in HAM value.

US equities dropped sharply and money moved to the safety of US treasuries, causing yields to drop markedly. News reports credited the 3 pct drop in crude oil futures (rising supplies, reduced demand estimate by OPEC) and continued concerns about China’s economy.

Corn Mar -1 394 (389-98); Jly -2 408; Dec -2 421 Bean Jan -17 1032 (1028-60); Jly -16 1050; Nov -11 1009 Meal Jan -6 369 (365-79); Jly -6 348 Oil -24 3175 Wheat Mar -4 582; Jly -4 588 (583-92) KC -4 617; MGE -3 604 Oats Mar -3 310 Rice -3 1226

LC Dec +7 16247; Feb -20 16285; Jun -37 15537 FC Jan -117 23160; Mar -10 22725; Aug -105 22722 LH Dec +32 8727; Feb -5 8455; Jun +35 9265 Milk Dec -9 1776; Jan -6 1584

US$ -.5%

Dow -268 17533 SP -34 2026 NAS -82 4684 Tran -122 8858 VIX +3.66   18.55   +25%

WTI -270 6112 (low 6043) Brent -240 6444 Gas -8 165 (low 163) NG +6 371 HO -3 205 Eth -2 169 Gold -3 1229 Slvr unch 1708

2-yr -.048 0.572% 5-yr -.064 1.562% 10yr -.054 2.166% 30yr -.043 2.832%

Blue Grass Stockyards Cattle Report for 12/09/2014 **resend with correction to supply totals ***CPH preconditioned feeder calf sale tomorrow night at 7 p.m. Receipts: 1950 Last Tuesday: 1406 Year Ago: 1070 Compared to Monday steer and heifer calves sold mostly steady on good quality offerings with very good demand for 500-600 lb steers and 400-500 lb heifers; some fleshy 600-700 lb steer offerings weak. Light demand for bull calves over 600 lbs. Yearling steers and heifers limited comparison with yesterday however compared to last week sold steady to weak; however very good demand for 900-1000 lb steers. Slaughter cows sold steady to 1.00 higher with good demand. Slaughter bulls sold steady with good demand.

Total supply included 05% slaughter cows, 02% slaughter bulls, less than 01% replacements and 93% feeders. Feeder supply 48% steers, 10% bulls, 42% heifers with 69% of feeders weighing over 600 lbs.

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Tagged Post Topics Include: Economics, Market updates