Market Closes - December 20, 2012

Posted on Dec 21, 2012
Given this week’s bearish price activity, this morning’s USDA announcement that China had cancelled more soybean export purchases just accelerated the selling.  The soy complex led the market down with Chicago wheat futures also losing about 2 percent. Corn sold off sharply but managed to recover several cents to close mid-range.  Nearby March Corn traded down into the price gap created July 6 during the drought-led price rally.  This price gap down to $6.83 is chart support. See chart here.

March CBOT Wheat closed below support at $8.00 so downside risk is $7.75 to start. The spec funds continue to build a very large SHORT futures position.

Momentum at the CBOT is very negative at this time.  The market needs some news/event to cause a short-covering rally.

Cattle futures couldn’t escape the general bearish day in agricultural futures. Cash cattle reportedly traded today at $126/cwt.  Cattle on Feed will come out tomorrow afternoon.

Lean Hog futures experienced relatively small losses today.  The Pork Cutout dropped $1.13 to $81.90/cwt.

Corn Mar -6.5 696.5 (low 687.5); Jly -8.5 697; Dec -10 604

Bean Jan -28 (low 1403); Jly -23.5 1390; Nov -13 1288 Meal Jan -9 428; Oct -4.5 368 Oil -50 4791

Wheat Mar -15 790; Jly -15 808 (low 800) KC -14 844;  MGE -12 884

LC Dec -52 12895; Feb -85 13350; Aug -95 13160 FC Jan -120 15227; Apr -82 15665; Aug -47 16205

LH Feb -12 8645; Apr -27 9117; Jly -37 9987

Milk Dec -9 1856; Jan -13 1780

Oats -15 360

Rice +8 1527

US$ -.1%

Dow +60 13312

SP +8 1444

NAS +6 3050

Tran +37 5358

VIX +.31 17.67

WTI -1 8997

Brent -15 11021

Gas +1 275

NG +12 344

HO +2 305

Eth -1 221

Gold -22 1646

Slvr -114 2998

2-yr -.011 0.268% 5-yr +.007 0.778% 10yr -.005 1.801% 30yr -.005 2.984%

Blue Grass Stockyards Cattle Weekly Summary Report for the week ending 12/19/12 Receipts: 2,568   Last Week:  1,950   Year Ago:  1,971

**Total includes 519 head sold in special cow sale Wed. night.

*****Bluegrass Stockyards Lex. will be closed for Holidays Dec. 24-Jan. 6 and will resume Jan. 7, 2013.****

Compared to last week steer and heifer calves under 600 lbs sold 4.00 to 10.00 higher with very good demand; some featherweight steers under 450 lbs 10.00 to 20.00 higher with active farmer participation for lightweight 400-500 lb calves.  Yearling steers sold steady to 1.00 higher with good demand.  Yearling heifers 4.00 higher in a limited comparison.  Slaughter cows sold 2.00 to 3.00 higher with good demand. Slaughter bulls sold steady with moderate demand.

Total supply included 07% slaughter cows, 01% slaughter bulls, 19% replacements and 73% feeders.  Feeder supply 37% steers, 19% bulls, 44% heifers with 54% of feeders weighing over 600 lbs.

Tagged Post Topics Include: Economics, Market updates