Market Closes - December 13, 2013

Posted on Dec 13, 2013
 Corn futures closed sharply lower on demand concerns – based on little other than “fears”, fear that China has/will cancel corn and DDG purchases and that Congress might move against ethanol. Corn sold off all day long, right into the close.  March Corn posted its lowest close since December 2. Watch 2.18-2.20 for chart support.

 In contrast, soybean futures gained throughout the day and into the close. This strength was mostly credited to strong nearby demand for soybean meal. Also helping was a major reduction in the sharp price loss in soybean oil futures seen in the morning of about 1.6 percent.

 Reportedly, the large funds were buying soybean/meal futures while selling corn and wheat futures. Just a reminder that the spec funds are long soybeans and short corn and wheat – so they made some money today.

 Wheat futures keep moving lower, so the “trend is your friend” is bearish for the time being. This latest move was reinforced by this week’s WASDE report that increased world ending wheat stocks much more than traders expected.

 Live Cattle futures slid lower on this week’s weak boxed beef values. Today’s market put Choice down 1.56 at 198.89 and Select carcasses up 0.39 at 187.01/cwt. Just two days ago, Choice beef topped at $202.61.   Fed cattle traded at $131 today in the southern Plains, down a dollar/cwt from last week. Feeder futures managed steady closes with the sharp corn price drop.

 Lean Hog futures closed lower on Thursday’s and today’s midday pork cutout quotes.  FOB Plant Pork dropped 1.15 to $86.98/cwt; this compares to $91.65 on Tuesday. Lower values for hams and bellies are primarily responsible for the drop in carcass value. Average hog weights are five pounds heavier than a year ago.

Corn Mar -9 425; Jly -8 441; Dec -9 452 Bean Jan +4 1327; Jly +1 1284; Nov unch 1158   Meal Jan +3 433; Jly +1 405   Oil -17 4020 Wheat Mar -5 629; Jly -5 637   KC -6 672; MGE -3 661 Oats -12 340 Rice +8 1554

LC Dec -37 13187; Apr -32 13380; Jun -35 12870 FC Jan unch 16707; Apr +2 16740; Aug +15 16892 LH Feb -82 8717; Apr -45 9150; Jun -30 9950 Milk Dec +10 1902; Jan +16 1850 US$ steady

Dow +16 15755 SP unch 1775 NAS +3 4001 Tran +27 7086  VIX +.22 15.76

WTI -103 9647 Brent +15 10882 Gas -1 262 NG -1 440 HO -1 297 Eth -6 176

Gold +13 1239 Slvr +23 1963

2-yr unch 0.33% 5-yr -.01 1.53% 10yr -.02 2.865% 30yr -.02 2.875%  

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Tagged Post Topics Include: Economics, Market updates