Market Closes - December 17, 2012

Posted on Dec 17, 2012
CBOT futures tried to rally going into today on Friday’s strength.  However, the morning export inspections report cooled the market.  Although corn export inspections were a tad better than expected (but still way behind what’s needed), the soybean number was disappointing.  Yet soybean exports YTD remain the bright spot as China has a very big soybean appetite.

It’s interesting to note that January Soybean Meal has rallied about 10 percent since mid-November. Meal has gained more rapidly than soybean oil futures. Soybean Crush has been very strong with November’s total a near-record for that month.

Wheat futures closed lower on disappointing export inspections and forecasts for moisture in the central and northern Plains.

This forecast for snow in the Plains also contributed a little to the Live Cattle futures price rally.  But the key factors were very strong US Stock Index markets and Friday’s surge in cash cattle prices.

Feeder futures surged to new highs for the move, to prices not seen since last summer before the drought raised feed prices. The January Feeder contract is up $9 this month.

Lean Hog futures closed lower on cash market concerns, declining packer margins, and futures’ premium to the cash price.

Investors were moving money from “safe” Treasuries to equities as “risk on” trade ensued as Obama and Boehner discussed the fiscal cliff, creating “optimism” for a solution. Signs indicate Congress has to come back after Christmas.

Corn Mar -7 724; Jly -5 725; Dec -6 622

Bean Jan unch 1496; Mar -3 1488; Nov +1 1319 Meal Jan -2 455;  Oct unch 374 Oil -20 4979

Wheat Mar -6 808; Jly -6 827 KC Mar -8 856;  MGE -7 896

LC Dec +210 12900; Apr +80 13757; Oct +70 13660 FC Jan +117 15425; Apr +130 15765; Aug +60 16255

LH Feb -65 8475; Apr -60 8980; Jly -42 9917

Milk Dec +6 1865; Jan +1 1776

Oats unch 389

Rice -21 1521

US$ Unch

Dow +100 13235

SP +17 1430

NAS +39 3011

Tran +40 5227

VIX -.66 16.34

WTI +42 8767

Brent -6 10812

Gas -1 265

NG +2 333

HO -2.5 295.5

Eth -2 228

Gold unch 1697

Slvr -2 3228

2-yr +.020 0.266% 5-yr +.051 0.736% 10yr +.069 1.776% 30yr +.084 2.944%

Blue Grass Stockyards Cattle Auction Report for 12/17/2012 Receipts:  1,501   Last Monday:  864   Year Ago:  1,242 Compared to last week, steer calves sold 2.00 higher with good demand; featherweight calves under 450 lbs 10.00 to 20.00 higher with very good demand.  Yearling steers 1.00 higher with good demand.  Heifer calves under 600 lbs 4.00 to 10.00 higher with very good demand.   Yearling heifers 4.00 higher in a limited comparison.  Slaughter cows sold 2.00 higher with good demand. Slaughter bulls sold steady with moderate demand. There was active farmer participation for 400-500 lbs calves today. Total supply included 07% slaughter cows, 01% slaughter bulls, 01% replacements and 91% feeders.  Feeder supply 35% steers, 22% bulls, 43% heifers with 52% of feeders weighing over 600 lbs.

Lake Cumberland Livestock Market, Somerset Kentucky (Cattle weighed at time of sale) *The last sale for 2012 will be Dec 22nd, first sale for 2013 Jan 5th. Receipts:  1033            Last Week:  894      Last Year:  No sale Compared to last week:  Steers were 3.00 to 5.00 higher, Heifers 3.00 to 4.00 higher.  Slaughter Cows were 3.00 higher and Bulls 1.00 to 2.00 higher.

 

Tagged Post Topics Include: Economics, Market updates