CBOT futures closed mostly steady to higher following today’s USDA WASDE Report. Wheat rallied strongly; wheat often responds to movement in the US Dollar’s value – today the US$ dropped one percent. Wheat rallied despite the WASDE raising world wheat 15/16 carryout to a record 229.86 MMT, up 2.56 MMT from last month’s report. Corn and soybean futures are sitting near the middle of the November-December trading ranges. Focus will continue to be on South American weather, the US Dollar and China’s buying and economy.

Cattle futures settled strongly lower at 1 pm and then sold off to limit-down levels during the late afternoon (LC -300, FC -450). Cash cattle reportedly sold for $118-119, or $5.00 below last week. Choice beef dropped 1.06 to 203.08 and Select fell .73 to 190.00. In today’s WASDE Report, USDA lowered the 2016 Annual Average Steer Price from last month’s $136-147 range to $132-142; This year’s average is estimated at $148.07/cwt. 2016 hog and broiler price forecasts are unchanged from November. December LC traded below the $120 chart support. $118.70 is the next target, then $115. This contract is at oversold levels based on the RSI as new contract lows are being made.

Lean Hog futures closed higher in contrast to cattle futures. Short-covering and LH/LC spread trading were supportive. FOB Plant Pork gained .56 to 72.66.

The US stock market was extremely volatile today with a morning rally turning to a big loss over a 2-hour period ending at noon EST. The VIX “fear index” jumped sharply. Stocks followed Crude Oil today; oil rallied on a drop in inventories but this rally failed. WTI had a 5% trading range.

Corn Mar unch 374; Jly unch 384; Dec unch 395 Bean Jan unch 877; Jly unch 892; Nov unch 895 Meal +2 277 Oil -38 3111 Wheat Mar +8 490; Jly +7 500 KC +8 480; MGE +4 510 Oats -4 238 Rice +3 1100

LC Dec -240@11985; Apr -242 12562; Jun -195 11777 FC Jan -322@15062; Apr -295 14972; Aug -295 15330 LH Dec +142 5675; Feb +87 5925; Jun +80 7497 Milk Dec +4 1462; Jan -13 1402

 

US$ -1% 97.37 Dow -76 17492 SP -16 2048 NAS -75 5023 Tran -35 7628 VIX +2.01 19.61 +11.4%

WTI -30 3721 (3687-3899) Brent -3 4023 Gas +4 124 NG unch 207 HO -1 125 Eth unch 146 Gold -3 1073 Slvr +4 1413

2-yr -.020 0.923% 5-yr -.038 1.640% 10yr -.025 2.213% 30yr -.011 2.964%