Market Closes - December 30, 2013

Posted on Dec 30, 2013
CBOT futures closed lower but early-2014 soybean contracts cut losses late on a strong rally in January soybean meal futures.  Soybean meal and soybean oil futures are mirror images with meal at its highs and soyoil futures making new contract lows. Export demand is strong for soybean meal.  Traders sold CBOT futures on news of good rains in parts of Argentina and forecasts for more beneficial rains.  Moisture conditions and crop development in South America will be an ongoing market factor.

Wheat futures saw their best prices very early this morning, but headed lower late morning with accelerated losses in the last hour of trading. Wheat fundamentals and chart technicals are bearish as new contract lows are established.  Spec funds have a large short position that’s making money.  The easiest route is lower until something sparks a short-covering rally from oversold levels.

CBOT futures end trading Tuesday at the normal time of 1:15 pm CST, are closed January 1, and resume trading at 8:30 a.m. CST on January 2.

Cattle futures closed higher with the December Live Cattle contract leading the way higher, adding to Friday’s big gains.  Friday’s $3-6/cwt jump in cash cattle prices got this rally started Friday and a follow-through increase in boxed beef values sustained the futures rally.  Technically, December and February Live Cattle futures are up against chart resistance.  The December LC contract ends trading tomorrow.

Lean Hog futures opened higher this morning on Friday’s friendly Hogs and Pigs Report, but the sell-off began quickly with futures closing at/near the day’s lows and a new low for this move.  The February LH contract stopped its fall today near chart support at $85.00.  Failure of this support could lead to another $2-3 downside risk.  The FOB Plant pork cutout increased 0.78 to $83.63/cwt on higher rib and loin values.

Corn Mar -4 423 (423-27); Jly -4 439; Dec -4 451 Bean Jan -3 1328 (1319-33); Mar -5 1309; Jly -7 1279; Nov -8 1146 Meal Jan +5 450; Mar unch 427; Jly -2 408 Oil -39 3896 Wheat Mar -8 600 (600-09); Jly -8 613 (612-20) KC -8 636; MGE -4 630 Oats -2 354 Rice -1 1544

LC Dec +55 13440; Feb +15 13510; Jun +17 12972 FC Jan +27 16727; Apr +5 16882; Aug +7 17052 LH Feb -67 8497; Apr -52 9045; Jun -27 9997 Milk Jan -22 1926; Feb -16 1862

US$ -.4%

Dow +26 16504 SP unch 1841 NAS -2 4154 Tran -1 7351 VIX +1.10 13.56  +8.8%

WTI -110 9922 Brent -91 11127 Gas -1 280 NG +6 443 HO -3 306 Eth -2 194

Gold -18 1196 Slvr -49 1956

2-yr unch 0.40% 5-yr -.03 1.71% 10yr -.03 2.98% 30yr -.03 3.90%

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Tagged Post Topics Include: Economics, Market updates