Market Closes - February 13, 2014

Posted on Feb 14, 2014
The soy complex and wheat futures closed strongly higher today, extending the rally which began at the end of January.  Corn, on the other hand, has had a down week, but only by a few cents.  There wasn’t any friendly “news” in the market today, but technical buying by the large funds apparently fueled the rally.

March Soybeans broke above chart resistance at the December highs. Next resistance levels are $13.54 on the weekly continuation chart and 13.70-13.78 on the March chart. The weekly chart also has gap resistance at 13.80.   March Soybean Meal hit a new contract high today.  Resistance on the weekly chart comes in at $468.

March KC and MGEX Wheat are now over 60 cents above the contract lows set at the end of January.

Cattle futures closed sharply higher on optimism for cattle and beef prices. Today’s cash prices were near steady.  The only feedlot trade reported was $142/cwt in Kansas, up $1/cwt from last week.  Boxed Beef: Choice carcasses up 0.05 at 208.10; Select up 0.13 at 207.76/cwt.  Cattle slaughter has slowed down about 7 percent from last week.

Beyond the nearby February LH contract (which expires tomorrow), lean hog futures traded slightly higher on rising pork values and in sympathy with the big rally in the cattle pit.  FOB Plant Pork Cutout was up 1.20 to $95.17/cwt. Notice that the April LH contract is over $8/cwt premium to the February contract.  The April LH contract is within a dollar of its contract high set late October 2013.

  CME/CBOT Futures markets are CLOSED on Monday for Presidents Day.

Corn Mar unch 440; Jly unch 451; Dec -2 456 (455-59) Bean Mar +21 1344; Jly +20 1312; Nov +15 1134 (1117-38) Meal Mar +9 453; Oct +7 357 Oil +55 3954 Wheat Mar +8 595; Jly +7 597 (589-99) KC +10 673;  MGE +7 662 Oats -8 411 Rice +8 1571

LC Feb +105 14315; Apr +162 14240; Oct +80 13480 FC Mar +222 17072; Apr +220 17160; Aug +187 17370 LH Feb -15 8635; Apr +55 9492; Jun +25 10490 Milk Feb +2 2312; Mar +6 2110

US$ -.5% Dow +64 16028 SP +11 1830 NAS +39 4241 Tran +18 7282 VIX -.16 14.14

WTI -12 10023 Brent -6 10873 Gas unch 278 NG +8 531 HO +1 304 Eth +4 201

Gold +1 1301 Slvr +6 2046

2-yr 0.315% 5-yr 1.51% 10yr 2.73% 30yr 3.68%

Blue Grass Stockyards Cattle Weekly Summary Report for the week ending 02/05/14

Receipts:  1,254   Last Week:  2,697   Year Ago:  2,411

Compared to last week steer and heifer calves sold steady with good demand. Quality was plain through good.  Yearling steers and heifers sold steady compared to last week with good demand; futures market remains very favorable for heavier yearling 900-1000 lb cattle keeping them in very good demand.  Slaughter cows and slaughter bulls sold 5.00 higher with very good demand. Total supply included 07% slaughter cows, 01% slaughter bulls, 01% replacements and 91% feeders.  Feeder supply 48% steers, 15% bulls, 37% heifers with 59% of feeders weighing over 600 lbs. 

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Tagged Post Topics Include: Economics, Market updates