Market Closes - December 9, 2013

Posted on Dec 9, 2013
Soybean and meal futures led the CBOT higher on strong demand from China.  China’s reported November soybean imports totaled 6 mmt, up from 4.1 mmt a year earlier. Consequently, traders expect USDA will lower the 2013/14 soybean carryout forecast in Tuesday’s WASDE report (@ 11am CST) from 170 million bushels to almost 150 million. The spec funds added to their long soybean position in the latest CFTC position report.

Corn futures closed around 4 cents higher and near the day’s highs. It appears the funds continue to cover short positions as technically the market looks like it has established a seasonal low (chart has double-bottom and the downtrend has been penetrated); a close over the November high of $4.495 would be a strong signal.

Corn and soybean futures rallied even with bearish news such as favorable South American crops and multiple cargos of corn being rejected by China on GMO issues.

Wheat closed about steady and near the day’s lows after failure of the overnight rally based on the extreme cold that may have damaged exposed winter wheat. Tomorrow’s USDA report is expected to make slight cut in US wheat ending stocks but increase global stocks due to large Canadian and Australian crops; thus, MGEX wheat futures moved to new lows for the fourth straight day.

Cattle futures closed higher today, correcting some of last week’s sharp sell-off amid weaker cash cattle (down $1) and beef values, as well as possible long liquidation. However, boxed beef values firmed today with Choice carcasses up 1.05 at 202.52 and Select carcasses up 1.14 at 188.12/cwt.

Lean Hog futures closed moderately higher except for the nearby December contract which expires on Friday.  Last Friday’s bullish chart reversal and 0.99/cwt gain in the pork cutout probably got the buying started today.  Today the pork cutout ended near steady.

Corn Mar +4 438; Jly +4 453; Dec +3 467 Bean Jan +18 1344; Jly +12 1300; Nov +8 1172 Meal Jan +11 439; Jly +7 410 Oil -27 4022 Wheat Mar -1 650; Jly -1 653 KC unch 696; MGE -4 677 Oats +4 332 Rice -3 1551

LC Dec +17 13160; Apr +32 13402; Jun +37 12882 FC Jan +67 16515; Apr +82 16627; Aug +82 16790 LH Dec -30 8137; Feb +85 8985; Jun +87 10057 Milk Dec -3 1905; Jan +15 1870

US$ -.2%

Dow +5 16026 SP +3 1808 – Record close NAS +6 4069 Tran +25 7225 VIX -.30 13.49

WTI -31 9734 Brent -256 10905 Gas -6 267 NG +12 423 HO -4 301 Eth +2 201

Gold +5 1235 Slvr +42 1989

2-yr unch 0.30% 5-yr unch 1.49% 10yr -.01 2.85% 30yr -.01 3.88% Blue Grass Stockyards Cattle Auction Report for 12/09/2013

Receipts:  514   Last Monday:  2,128   Year Ago:  864

Compared to last week steer and heifer calves too light to test due to wintry conditions over the weekend making fields very soggy and difficult to load cattle.  Yearling steers lightly tested.  Yearling heifers sold firm in a light test.  Slaughter bulls sold 1.00 higher with moderate demand.  Slaughter cows sold steady to2.00 higher with good demand.

Total supply included 04% slaughter cows, 01% slaughter bulls, 01% replacements and 94% feeders.  Feeder supply 28% steers, 22% bulls, 50% heifers with 51% of feeders weighing over 600 lbs.

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Tagged Post Topics Include: Economics, Market updates