Market Closes - December 21, 2012

Posted on Dec 21, 2012
CBOT futures closed higher on short-covering going into a period of low-volume trade and increased risk surrounding the “fiscal cliff” negotiations (which have become more difficult).

Cattle futures closed mixed with little change.  Short-covering to trim positions was supportive while the bearish financial markets weighed on prices. This afternoon’s Cattle on Feed report is somewhat negative as November placements were bigger than expected and marketings less than expected; this made December 1st inventory down 6 percent from a year earlier, compared to trade expectations of down 6.6 percent.

Corn Mar +5.5 702; Jly +5 702; Dec +3 607

Bean Jan +22 1431; Jly +23 1413; Nov +13 1300 Meal Jan +6 434; Oct +3.4 371 Oil +80 4871

Wheat Mar +1 792; Jly +1 809 KC -2 842;  MGE -2 881

LC Dec +32 12927; Feb +7 13357; Oct +30 13530 FC Jan -12 15215; Apr -10 15655; Aug -5 16200

LH Feb +45 8690; Apr +45 9162; Jly +30 10017

Milk Jan +31 1811; Feb +19 1821

Oats +5 365

Rice -7 1520

US$ +.4%

Dow -121 13191

SP -14 1430

NAS -29 3021

Tran -17 5341

VIX +.17 17.84

WTI -124 8889 (low 8796)

Brent -111 10909

Gas -1.5 274

NG -2 344.5

HO -3 303

Eth +2 223

Gold +12 1658

Slvr +35 3002

2-yr +.012 0.276% 5-yr -.014 0.766% 10yr -.032 1.772% 30yr -.047 2.937%

United States Cattle on Feed Down 6 Percent   Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.3 million head on December 1, 2012. The inventory was 6 percent below December 1, 2011.

Placements in feedlots during November totaled 1.92 million, 6 percent below 2011. Net placements were 1.84 million head. During November, placements of cattle and calves weighing less than 600 pounds were 645,000, 600-699 pounds were 450,000, 700-799 pounds were 375,000, and 800 pounds and greater were 453,000.

Marketings of fed cattle during November totaled 1.76 million, 1 percent below 2011.

Other disappearance totaled 88,000 during November, 9 percent below 2011.

Kentucky Weekly Livestock Summary for December 14 thru December 20, 2012

*Most stockyards will be closed for the holidays.  The next summary will be published on 11 Jan 2013.

Receipts This Week   Last Week  Last Year 18,660      20,614     14,078

Supply:  Slaughter Cows 10 percent; Slaughter Bulls 3 percent; Feeder cattle 85 percent.  In the feeder supply, Steers made up approximately 51 percent and Heifers approximately 30 percent.  Steers and Heifers over 600 lbs totaled approximately 61 percent.  Replacement cattle 2 percent.

Compared to Last week: Steer and Heifer calves 5.00-7.00 higher; Feeder Steers and Heifers steady to 3.00 higher.  Demand very good for all classes.  Futures prices and recent moisture have provided support to prices closing out 2012.

Higher prices for Feeder Cattle Futures in tandem with lower Corn Futures has made lightweight cattle more attractive.  Local farmers also active in the market for lightweight calves with recent rains.  Slaughter cows and bulls close the week 2.00-4.00 higher as most auctions will be closed for the Holidays and plants compete for cattle to process during the break in sales.

 

Tagged Post Topics Include: Economics, Market updates