CBOT futures closed mostly steady to lower with late-session trading taking corn and wheat to the day’s highs while soybeans traded near the day’s lows. Early market strength evaporated between 9 to 10 am CT.  Ironically, soybeans had the better relative export shipment data for last week, but performed worse than corn and wheat. Futures found support from the weaker US dollar and very strong energy futures (ethanol was up a huge 7 cents and exceeded the last major high of 174 in June; December 2014 was last time the nearby ethanol futures price was any higher than today). However, traders took profits in soybeans amid uncertainty regarding Argentina’s weather and China/US relations in 2017.  Last Friday’s USDA WASDE supply-demand report was a non-event.  
 

Cattle futures closed strongly higher with Feeder Cattle closing near the day’s highs. Futures were supported by technical buying as 2017 contracts broke through the 200-day moving averages and traded higher than the last high set on December 1^st. 2017 LC contracts closed at their highest point since August 18.  The next resistance point is $116 for February LC and $115 for April LC. On the other hand, Feeder Cattle futures didn’t quite exceed those December 1^st highs. The December LC contract is in line with last week’s average fed steer price of $109.52/cwt. Although weaker than the midday quotes, Choice ended up .62 at 189.56 and Select jumped 2.27 to 173.95, making for a 15.61 Ch/Sel spread.
 

Lean Hog futures closed mixed with modest gains in Dec/Feb/April and steady closes for June-forward contracts. Futures were supported by higher cash hog prices and a stronger pork market. FOB Plant Pork closed up .57 at 76.38 with strong gains in Butt, rib and belly cuts. The midday quote was up .91.  The extreme cold weather this week in the Corn Belt could limit hog receipts; with very good margins, the packers are competing for hogs.  Technically, LH futures are at a key level. February is trying to break through chart resistance at the August high of 62.42; it peaked last week at that price. The last time February LH closed above $62.00 was July 26.

Corn Mar +1 360; Jly +1 374

Bean Jan -6 1031; Jly -6 1056

  Meal -3 316

  Oil +3 3697

Wheat Mar +1 417; Jly +1 440

  KC +1 415; MGE +1 537

Oats +5 230

Rice -6 985

 

LC Dec +162 11035; Apr +195 11220; Jun +140 10280

FC Jan +260 12855; Apr +207 12412; Aug +180 12352

LH Dec +65 5737; Feb +62 6217; Jun +2 7660

Milk Dec +7 1717; Jan +57 1725

 

US$ -.6%  100.97

Dow +40 19796  - New record high close.

SP -3 2257

NAS -32 5413

Tran -85 9323

  VIX +.86  12.61

Crude oil rallied on news of an agreement between OPEC and non-OPEC countries to reduce oil output.

WTI +99 5249  high 5451

Brent +115 5548

Gas +4 154  high 159

NG -22 353

HO +3 167

Eth +7 175

Gold +2 1164

Slvr +17 1714

The FOMC meets Tues/Wed and is expected to raise its key rate by 0.25 points.

2-yr +.012 1.145%

5-yr +.009 1.891%

10yr +.011 2.475%

30yr +.002 3.157%

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