Market Closes - December 18, 2014

Posted on Dec 18, 2014
CBOT futures closed higher. Soybeans and meal found support from the weekly export sales report for soybean products. January Soybeans are in a minor downtrending channel; $10.60 is a key resistance point to negate a November-December downtrend. Wheat moved to new highs overnight as traders were more convinced of restricted wheat exports from Russia; however, the rally faded during daytime trading in Chicago. The funds have moved from short wheat to long with plenty of room to add to those positions. But note that no wheat supply has disappeared just because Russia may not want to ship it all out for now.

Cattle futures reversed this week’s losses and closed strongly higher. The recent market volatility and cash market weakness could keep markets shaky until we get past the next two weeks of holiday-shortened slaughter and lower-volume futures trading. The monthly Cattle on Feed Report is out tomorrow afternoon. The average trade guess is for December 1st inventories at 101.2 pct of a year ago. Today, Choice Beef dropped .46 to 241.95 and Select fell .81 to 230.32.

Lean Hog futures closed strongly higher. Yesterday’s closes in the upper part of the trading range may have encouraged technical buying today which was then supported by the huge rally in cattle futures. Lean Hog futures are “oversold” with February LH falling $13.00 in the past month – now down $11.00. Weaker cash hog prices and steady pork values weren’t supportive. FOB Plant Pork closed up .14 to 87.38.

US equity markets soared today on continued buying based on the Federal Reserve’s announcement it will hold rates near zero longer than investors have thought given the recent strength in the US economy.

Corn Mar +3 411; Jly +3 426; Dec +3 435 Bean Jan +8 1035; Jly +9 1056; Nov +10 1020 Meal Jan +6 365; Jly +3 347 Oil +12 3189 Wheat Mar +7 655; Jly +7 654 KC +2 684; MGE +1 661 Oats +1 316 Rice unch 1211

LC Dec +227 15870; Feb +270 15852; Jun +227 15045 In late day trading, most LC contracts were at/near limit up of $3.00 FC Jan +47 21707; Mar +152 21377; Aug +352 21575 In late day trading, FC contracts were much stronger than the 1:00 pm pit settlements. LH Feb +140 8187; Apr +132 8322; Jun +197 9087 Milk Jan +48 1623; Feb +27 1555

US$ +.2%

Dow +421 17778 SP +48 2061 NAS +104 4748 Tran +139 8953 VIX -2.63 16.81

WTI -162 5517 Brent -137 5981 Gas -3 154 NG -4 366 HO -5 196 Eth +2 164 Gold +4 1199 Slvr -4 1589

2-yr +.024 0.637% 5-yr +.045 1.662% 10yr +.056 2.206% 30yr +.065 2.816%

Blue Grass Stockyards Cattle Weekly Summary Report for the week ending 12/16/14 Receipts: 3376 Last Week: 4200 Year Ago: 4024 ***Total receipts include 363 head sold in special cow sale Wed. night. ***Stockyards will be closed for Holidays and will resume Jan. 5, 2015**

Compared to last week steer and heifer calves sold 3.00 to 7.00 lower with light demand; except featherweights steady with good demand. Yearling steers 10.00 lower in a limited comparison. Yearling heifers 5.00 to 10.00 lower in a light test. CME cattle futures down the limit for several days has continued to push prices downward. Very light demand for big fleshy balling calves. Quality was plain through good. Slaughter cows sold 1.00 to 2.00 lower with moderate demand. Slaughter bulls sold steady with good demand.

Total supply included 11% slaughter cows, 02% slaughter bulls, 07% replacements and 80% feeders. Feeder supply 35% steers, 24% bulls, 41% heifers with 41% of feeders weighing over 600 lbs.

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Tagged Post Topics Include: Economics, Market updates