Market Closes - December 19, 2012

Posted on Dec 19, 2012
Old-crop corn and soybean futures closed sharply lower and within a few cents of the day’s lows.  This week’s fundamental news has been disappointing, including: weak soybean exports and export sale cancellations; improving South American weather; today’s 2013 acreage estimates by Informa; and negative chart action (technicals).

CBOT wheat futures suffered limited losses. Wheat started out higher but was weighed down through the day by the large losses in YC and YSB.  Wheat garnered support from news that US wheat export sales were made overnight.  This indicates US wheat has become competitive on the world market.

Informa estimated farmers will plant 99 million CORN acres is 2013, compared to 96.9 million in 2012 according to USDA.  Informa estimated the 2013 soybean acreage at 78.96 million acres, compared to 77.2 million acres this past crop year, according to USDA.

Live Cattle futures closed sharply higher, overcoming Tuesday’s losses.  The apparent stimulus was the published estimate for Friday’s USDA Cattle on Feed Report which emphasizes the tight on-feed supplies. Cattle on Feed and Cold Storage reports come out Friday afternoon. Dow Jones pre-report estimates are November Placements at 91.2 pct of a year ago, resulting in December 1 On-feed Inventory at 93.4 pct.

Boxed beef values were mixed today, not offering much support for LC futures.  Choice dn 0.38 at 193.55; Select up 1.49 at 176.45.

By the close of the US financial markets, traders had become much less confident of an agreement to solve the “fiscal cliff” issue.  The VIX Index soared to 17.36.

Corn Mar -17 703; Jly -16 706; Dec -10 613

Bean Jan -29 1437; Jly -19 1414; Nov -9 1301 Meal Jan -8 437; Oct +1 372 Oil -76 4841

Wheat Mar -5 806; Jly -6 823; Dec -8 845 KC -2 858; MGE -6 895

LC Dec +125 12947; Feb +140 13435; Oct +25 13600 FC Jan +127 15347; Apr +140 15747; Aug +82 16252

LH Feb +130 8657; Apr +117 9145; Jly +32 10025

Milk Dec -9 1859; Jan -18 1788

Oats -5 375

Rice +4 1519

US$ -.1%

Dow -99 13252

SP -11 1436

NAS -10 3044

Tran +10 5321

VIX +1.79 17.36 (+11.5%)

WTI +131 8971

Brent +128 11012

Gas +5 274

NG -8 334

HO +4 303

Eth -4 221

Gold -2 1668

Slvr -59 3108

2-yr +.012 0.272% 5-yr -.005 0.777% 10yr -.019 1.807% 30yr -.013 2.992%

Tagged Post Topics Include: Economics, Market updates