Market Closes - December 23, 2019

Posted on Dec 23, 2019

Corn Mar +1 389 (387-90); Jly +2 401; Dec +1 402

Bean Jan +6 934 (927-37); Jly +4 967; Nov +2 969

  Meal +3 301

  OIL  -1 3378

Wheat Mar -3 539; Jly -2 547 (546-53)

  KC -4 458; MGE unch 537

Oats -3 288

Rice +3 1291

 

LC Dec +17 12240; Apr -7 12665; Jun +5 11817

FC Jan -75 14352; Apr -55 14595; Aug -47 15180

LH Feb -42 7025; Apr +5 7755; Jun +22 8950

Milk Jan +4 1740; Feb +2 1742
 

CBOT futures closed mixed with soybeans/meal up the most and wheat dropping a few cents.  Corn and soy futures found support from positive comments from Chinese leaders on the recent trade deal, and news China intends to lower some tariffs on January 1st. Phase 1 appears “safe”. Chicago wheat futures have closed lower for 4 straight days, but most of the mid-November to mid-December rally is intact. U.S. wheat remains challenged to compete on price in the world market. The spec funds remain sizable shorts in corn and soybean futures, representing underlying support.  

Live cattle futures closed steady while feeders were down slightly. LC opened the day lower but climbed back to around unchanged. Support came from stronger boxed beef values. Choice beef gained 1.87 to 211.57 and Select jumped 3.61 to 204.64, narrowing the Ch/Sel spread to 6.93. Cattle futures overcome Friday’s somewhat bearish Cattle on Feed Report that showed higher-than-expected feedlot placements (104.9%) in November. The on-feed inventory on December 1, 2019 was up 2.5% over a year earlier.

Lean Hog futures closed slightly higher except for February’s 42-cent loss. LH rallied at the open, sold off into mid-morning and then rallied into the closing bell. Hog futures continue to be supported by optimism that China will increase its U.S. pork purchases. News that China is lowering its tariffs on pork on January 1st would seem to support that cause. Analysts note that February LH is around $10/cwt premium to the CME LH Index; something has to change by February. FOB Plant Pork edge .29 higher to 76.83. Belly value rose 3 pct and ham value dropped 3 pct.

HOGS AND PIGS REPORT
This afternoon’s Quarterly Hogs and Pigs Report put the U.S. hog inventory up 3 pct from 12/1/18, including the breeding herd up 2 pct yr/yr. The Sep/Nov pig crop at 35.1 million head was up 2 pct from 2018.  Average Pigs/Litter hit a record high of 11.09 for the Sep/Nov quarter, compared to 10.76 in 2018.

The total number of all hogs in Kentucky on December 1, 2019, was estimated at 435,000 head, up 150,000 head from the previous year. All breeding hogs were estimated at 50,000 head, up 13,000 head from last December. All market hogs were estimated at 385,000 head, up 137,000 head from this time last year.

 

US$ Steady

Dow +97 28552

SP +3 3224

NAS +21 8946

Tran +12 10913

  VIX +.21 12.72

 

WTI +20 6064

Brent +40 6654

Gas unch 171

NG -10 221

HO unch 203

Eth +1 142

Gold +8 1489

Slvr +29 1751

2-yr +.023 1.652%

5-yr +.022 1.751%

10yr +.012 1.929%

30yr +.008 2.354%

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