Market Closes - December 17, 2013

Posted on Dec 17, 2013
The two major factors lifting CBOT futures were: very strong demand for cash soybean meal and fresh attention to less-favorable temperatures/weather in Argentina and parts of Brazil.  January Soybean Meal futures surged to new contract highs, surpassing the previous high mark made in September. The next point of resistance is $468 on the weekly continuation chart. If soybean oil futures weren’t so bearish (new contract low today), soybean prices could be even better; global vegetable oil supplies are plentiful. Corn rallied off chart support with the March Corn showing a triple-bottom near $4.20. The weekly continuation chart has support at $4.10 which was December Corn’s low before expiration.

 Wheat tried to move higher with corn/beans but faded into a negative close.  US wheat is not competitive in the world market. The charts suggest further downside risk is present with spec funds pushing it down.

Livestock futures closed down as demand is not likely to improve through the holidays as slaughter is reduced. Choice boxed beef gave back Monday’s gain and more -- Choice carcasses down 1.54 at 198.43 and Select up 0.37 at 188.78/cwt.  Until boxed beef values increase, it’s hard to see cash cattle price or futures improving since packers are running in the red. Despite hog futures and cash hog price weakness, the pork cutout held steady today following Monday’s huge gain. The February LH contract moved even closer to the key chart support of $85.00 mentioned here Monday. The Quarterly Hogs & Pigs Report comes out December 27 and the monthly Cattle on Feed this Friday.

The FOMC will make its Interest Rate policy statement at 12:30 pm EST, followed by a press conference at 2:30 pm by Chairman Bernanke.

Corn Mar +3 427; Jly +4 442; Dec +4 454 Bean Jan +9 1346; Jly +9 1303; Nov +3 1165 Meal Jan +9 448;  Jly +6 417 Oil -44 3931 Wheat Mar -2 620; Jly -2 627 KC -5 660; MGE -4 650 Oats +9 355 Rice -6 1548

LC Dec -25 13175; Feb -52 13297; Jun -40 12857 FC Jan -125 16715; Apr -87 16707; Aug -62 16862 LH Feb -97 8565; Apr -65 9042; Jun -10 9890 Milk Dec +4 1902; Jan +41 1908

US$ steady

Dow -9 15875 SP -6 1781 NAS -6 4024 Tran -32 7120 VIX +.18 16.21

WTI -17 9731 Brent -106 10835 Gas +1 429 NG +1 429 HO -3 296 Eth +4 181

Gold -14 1232 Slvr -20 1986

2-yr -.02 0.32% 5-yr -.04 1.50% 10yr -.04 2.84% 30yr -.02 3.88%

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Tagged Post Topics Include: Economics, Market updates