Corn and soybean futures fell sharply today, under pressure from the crash in crude oil futures and a stronger US dollar. Futures had been rallying lately on short-covering. Most market fundamentals are non-bullish. Wednesday’s USDA WASDE report isn’t likely to have any surprises to impact the market. South American conditions are not a problem currently but do bear watching given the strength of El Nino and early reports of soybean rust. Wheat futures held up better than corn/beans but sold off into the closing bell.

News that the WTO has approved $1 Billion in penalties for the U.S. Country of Origin Labeling (COOL) law may have encouraged futures selling.

Cattle futures closed sharply lower and some contracts touched limit-down during the day. Prices also fell from the 1:00 pm closing prices printed above. December Live Cattle has dropped $10/cwt in the last 4 trading days, including 3 new contract lows. Choice up 0.27 at 202.87; Select down 1.13 at 190.36. Friday’s drop in beef values and cash steer prices weighed on the market early. Heavy carcass weights mean plentiful beef supplies.

Technically, the December LC contract is approaching critical support of $120.00 on the Weekly Continuation Chart. Then $118.70 from 2013 comes into play.

Lean Hog futures closed at 1 pm sharply lower with the nearby December LH contract falling another 65 cents this afternoon. Cash hog prices were weaker. FOB Plant Pork gained .16 to 73.89. Ham value fell sharply while belly and picnic values rose.

 

Corn Mar -8 373 (372-82); Jly -8 384; Dec -8 395 Bean Jan -24 882 (881-910); Jly -22 898; Nov -23 901 Meal Jan -7 278 Oil -83 3125 Wheat Mar -2 483; Jly -2 495 (494-503) KC -6 474; MGE -6 509 Oats -6 235 Rice -30 1087

LC Dec -265 12162; Apr -152 12845; Jun -125 12062 FC Jan -300 15645; Apr -327 15512; Aug -282 15780 LH Dec -157 5547; Feb -157 5752; Jun -110 7327 Milk Dec +1 1462; Jan +7 1435

 

US$ +.4% Dow -117 17731 SP -15 2077 NAS -40 5102 Tran -70 7885 VIX +1.03 15.84 +7%

WTI -234 3763 Brent -232 4068 Gas -6 121 NG -11 207 HO -6 128 Eth -4 147 Gold -13 1071 Slvr -18 1432

2-yr -.012 0.935% 5-yr -.033 1.679% 10yr -.039 2.236% 30yr -.044 2.965%