Market Closes - December 16, 2014

Posted on Dec 16, 2014
CBOT futures closed mostly lower and below the midday quotes. Wheat soared early on technical buying but closed well off the highs on profit-taking. Underlying support comes from ideas that Russia will restrict grain exports in some manner due to its economic problems and collapsing currency. The volatility and ultimate decline in energy and equity markets are weighing on agricultural prices. Note that the nearby Soybean Meal contract fell more sharply than other contracts. Rising bean production forecasts for South America also encouraged selling. Ethanol prices are falling as gas/crude drops – this is negative for corn price.

Cattle futures were down the $3.00/cwt daily limit across the board as traders liquidate long futures positions amid wide concern that meat demand is weakening; this attitude is reinforced by the bearish energy and stock markets. CHOICE Beef dropped 2.64 to 242.88 and SELECT dropped .42 to 234.25.

Lean Hog futures also fell sharply on spillover pressure from the limit-down move in cattle futures. The late-day crash in pork values caused even bigger losses in afternoon electronic LH futures trading. FOB Plant Pork fell 4.48 to 88.98 as picnics lost 17 pct and bellies lost 10 pct.

Investors/traders will be closely watching the announcement coming out of the FOMC meeting tomorrow afternoon.

Corn Mar -2 406 (404-11); Jly -1 421; Dec -2 431 Bean Jan -16 1023 (1021-39); Jly -14 1041; Nov -9 1002 Meal Jan -9 357; Jly -4 342 Oil -50 3177 Wheat Mar +4 623; Jly +6 626 (617-37) KC +8 655; MGE +2 634 Oats unch 314 Rice -35 1208

LC all contracts down the $3.00 limit Dec 15897; Feb 15875; Jun 14965; Oct 14720 FC all contracts down $3.00 limit Jan 21960; Mar 21525; Aug 21522 LH Feb -160 8167; Apr -140 8342; Jun -110 9015 Late-day prices: Feb 8062, Jun 8885 Milk Jan -3 1558; Feb -9 1515

US$ -.6%

Dow -112 17069 SP -17 1973 NAS -57 4548 Tran -117 8741 VIX +3.15 23.57 +15.4%

WTI -44 5582 Brent -136 5985 Gas -4 154 NG -9 363 HO -5 195 Eth -7 159 Gold -12 1196 Slvr -84 1572

2-yr -.028 0.560% 5-yr -.057 1.520% 10yr -.052 2.064% 30yr -.050 2.694%

Blue Grass Stockyards Cattle Report for 12/16/2014 Receipts: 1210 Last Tuesday: 1950 Year Ago: 1879 Compared to Monday featherweight steers sold steady with good demand, middleweights 3.00 to 4.00 lower with light demand in a light test; yearlings steady with yesterday however 10.00 lower compared to last week. Featherweight heifer calves sold steady to weak; middleweights sold 4.00 to 5.00 lower with light demand; over 600 lbs sold steady in a light test. CME cattle futures were down the limit again today and buyers lack of interest was reflected. Middleweight calves taking more of a hit today in response to the downward trend in CME futures. Slaughter cows sold steady with moderate demand. Slaughter bulls sold steady with good demand. Total supply included 10% slaughter cows, 02% slaughter bulls, less than 01% replacements and 88% feeders. Feeder supply 43% steers, 15% bulls, 42% heifers with 48% of feeders weighing over 600 lbs.

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Tagged Post Topics Include: Economics, Market updates