Market Closes - December 14, 2015

Posted on Dec 14, 2015
CBOT futures closed up slightly on a lack of significant market news. Export inspections were disappointing. Outside markets were negative early but finished higher. There’s some concern about the lingering dryness in northern Brazil. Argentina’s new president did remove all export taxes from corn and wheat and lowered soybean export tax by 5 percentage points. Exports may not immediately pick up due to anticipated currency devaluation. Longer term, Argentina should be more competitive.

Cattle futures closed at 1 pm sharply lower, but then lost more value in the afternoon. Feeder Cattle went lock-limit down $4.50/cwt in five contracts through August 2016. Live Cattle were down about $2.65 on average. Choice carcasses ended down 3.72 at 198.78; Select carcasses up 0.30 at 186.73. At midday, Choice was down 1.05 and Select was down 1.80. LC futures are approaching last week’s contract lows and FC futures made new contract lows in late day selling (limit-down). Market news mentions the risk of Canada and Mexico using WTO retaliation on U.S. meats.

Lean Hog futures closed at 1 pm down slightly but fell a little more in the afternoon under pressure from the cattle market. LH futures have a better technical picture. FOB Plant Pork was up .20 at 74.61.

Corn Mar +4 379 (374-80); Jly +4 389; Dec +3 399 Bean Jan +3 874 (868-78); Jly +2 888; Nov unch 891 Meal +2 275 Oil -24 3112 Wheat Mar +3 493; Jly +3 503 KC +5 488; MGE +3 510 Oats unch 233 Rice -7 1098

LC Dec -192 11952; Apr -205 12530; Jun -155 11725 FC Jan -397 14815; Apr -377 14730; Aug -420 14977 LH Feb -42 6012; Apr -27 6442; Jun -7 7610 Milk Dec +2 1458; Jan +3 1373

 

US$ steady Dow +103 17368 (17138-378) SP +10 2022 (1993-2023) NAS +19 4952 Tran -35 7490 VIX -1.66 22.73

WTI +65 3627 (low 3453) Brent -14 3779 Gas -4 124 NG -9 190 HO -2 112 Eth unch 146 Gold -17 1060 Slvr -11 1375

2-yr +.053 0.948% 5-yr +.084 1.655% 10yr +.086 2.225% 30yr +.076 2.955%

Kentucky Weekly Livestock Summary for the week of Dec 7-12 2015. Receipts This Week   Last Week    Last Year 32,024    24,107     27,969 Compared to last week steer calves sold mostly 5.00 to 10.00 lower with some instances sharply lower. Heifer calves were mostly 8.00-12.00 lower with some sharply lower. Demand was light to moderate for plain to good quality offerings. Yearling steers and heifers sold sharply lower with light demand. Slaughter cows sold mostly 2.00 to 5.00 lower and slaughter bulls steady to 3.00 lower with light to moderate demand. Lower CME cattle futures continue to have an impact on local markets.

Supply consisted of 7 percent slaughter, 4 percent replacement, and 89 percent feeder cattle. In the feeder supply, steers made up approximately 47 percent and heifers approximately 34 percent. Steers and heifers over 600 lbs totaled approximately 53 percent.

Tagged Post Topics Include: Economics, Market updates