Market Closes - December 14, 2016

Posted on Dec 14, 2016

The biggest news today is that the Federal Reserve raised its key interest rate by 0.25 points – as expected. This is only the 2nd increase in the last 10 years. The target is now 0.50-0.75.  The FOMC also forecast 3 rate increases in 2017, instead of 2. The markets reacted by selling stocks and Treasury bonds. For the record, the DOW set its all-time HIGH of 19,966 right after the 2:00 pm announcement. Will Dow 20,000 be achieved in 2016?

CBOT futures closed mixed with relatively small price changes. Corn and wheat closed near the day’s highs, despite the spike higher at 1 pm CST in the US Dollar Index when the FOMC raised its interest rate. Corn and soybeans were pressured by wetter forecasts in areas of Brazil and Argentina. Corn was supported by record-high weekly ethanol production amid strong operating margins. But ethanol prices fell sharply today in sympathy with crude oil futures.

Cattle futures closed lower on weaker boxed beef prices and limited trade at $110.50 on the online Fed Cattle Exchange. Choice ended down 0.85 at 190.88; Select up 1.03 at 176.37.

Lean Hog futures closed mixed, but nearly unchanged. FOB Plant Pork dropped .63 to 75.53 with a 7% drop in ham’s value.  The December LH contract expired today. February LH may be pressured by its heft premium to the current cash hog market.

Corn Mar +1 362; Jly +1 375; Dec +1 390

Bean Jan -4 1024; Jly -5 1048; Nov -4 1016

  Meal -2 313

  Oil +14 3692

Wheat Mar unch 418; Jly +1 441

  KC +5 420; MGE +3 541

Oats -3 230

Rice -8 970

 

LC Dec -2 11110; Apr -47 11275; Jun -60 10317

FC Jan -127 12770; Apr -112 12422; Aug -72 12362

LH Feb +2 6177; Apr unch 6695; Jun +22 7717

Milk Dec +8 1731; Jan -1 1712

 

US$ +1.0%      due to Fed’s rate hike.  

Dow -119 19793

SP -18 2253

NAS -27 5437

Tran -127 9218

VIX +.47 13.19  +3.7%

 

WTI -221 5077

Brent -202 5370

Gas -2 153

NG +10 357

HO -3 164

Eth -6 168

Gold +5 1164

Slvr -9 1689

 

2-yr +.105 1.275%

5-yr +.139 2.051%

10yr +.096 2.576%

30yr +.036 3.182%

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