Market Closes - December 5, 2016

Posted on Dec 5, 2016

Corn, soybean and soybean meal futures closed strongly higher; wheat markets were mixed. Support for corn and soy futures came from strong export data which encouraged heavy fund buying especially in corn where short-covering magnified buying. Corn jumped 8 cents in first 15 minutes of trading at 830 am CST, blowing through the 20-day moving average at 3.52 March. However, corn did stop short of rising above the downtrend line and last week’s highs. Soybean futures essentially erased last week’s weekly loss. Soybean futures are well above the 20-day moving averages and the 200-day ($9.99 in the January). Also supportive were a weaker US Dollar, 4-year highs in palm oil prices and strong soybean crush margins in China.

Cattle futures closed mixed and in the middle of the day’s trading ranges.  This followed Friday’s sharp losses. Futures were supported by December LC’s huge discount to last week’s cash market. USDA reported last week’s average weighted steer price of $114.03/cwt, up 2.7% from the previous week. Choice Beef closed up 1.67 at 191.39 and Select gained .53 at 173.23. Note the Choice-Select Spread is 18.16. Last week’s beef production totaled 517.5 million pounds, up 10.6% from a year earlier.

Lean Hog futures closed moderately higher on stronger cash hog prices and pork values. FOB Plant Pork closed up .81 at 74.06 with stronger loins, picnics and bellies offsetting weaker values for butts, ribs and hams. This market strength comes even as slaughter volumes are at record levels. USDA reported last week’s total at 2.54 million head, up 4.8% from a year earlier. The soon-to-expire December LH contract traded to a new high for this rally which started in October.

Corn Mar +12 359 (347-60); Jly +12 373

Bean Jan +16 1043 (1028-50); Jly +15 1064

  Meal +7 319

  Oil -5 3767

Wheat Mar +4 408; Jly +2 433(430-35)

  KC unch 408; MGE -4 535

Oats -1 199

Rice +36 998

 

LC Dec -40 10782; Apr -7 10897; Jun -22 10055

FC Jan -27 12432; Apr -17 12107; Aug -12 12080

LH Dec +75 5150; Apr +97 6112; Jun +55 7270

Milk Dec -13 1703; Jan -19 1677

US$ -.5%

Dow +46 19216   New Record HIGH CLOSE

SP +13 2205

NAS +53 5309

Tran +33 9082

  VIX -1.75  12.37  -12.4%

 

WTI -73 5095

Brent -29 5417

Gas -1 155

NG +15 359  Big rally in light of very cold weather arriving.

HO -1 164

Eth +2 159

Gold -6 1172

Slvr -2 1681

 

2-yr +.016 1.124%

5-yr +.022 1.851%

10yr +.008 2.398%

30yr +.010 3.071%
 

CORN USE FOR ALCOHOL AND OTHER USES UP 3% Yr/Yr

   Total corn consumed for alcohol and other uses was 507 million bushels in October 2016. Total corn consumption was up 5 percent from September 2016 and up 3 percent from October 2015. October 2016 usage included 91.6 percent for alcohol and 8.4 percent for other purposes. Corn for beverage alcohol totaled 3.18 million bushels, up 14 percent from September 2016 and up 23 percent from October 2015. Corn for fuel alcohol, at 455 million bushels, was up 5 percent from September 2016 and up 3 percent from October 2015.

September 2016 contained 30 days.

October 2016 contained 31 days.

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