CBOT futures closed higher, led by the soy complex. Corn and soybean futures traded to new highs and new high closes for 2016. Market support came from significant fund buying covering short positions. Today’s price action occurred even as the stock and energy markets fell sharply. There wasn’t any particular fundamental news that caused the rally. The market is following the spec money and technical patterns.

Cattle futures closed at 1 pm with small gains after a rollercoaster day (up on the opening, then weaker, higher into the close, but weaker late-day). A strong boxed beef market and the winter storm provided support to offset the negative “outside” markets – crude oil, gasoline, equities. Choice carcasses were up 1.95 at 222.47; Select up 1.97 at 217.63. These are weaker than midday quotes of 223.36 and 217.93.

Lean hog futures closed strongly lower and at/near the day’s lows, which were also about $2.00 below Monday’s highs. LH futures dropped at the opening and slid lower into the 1 pm close. Futures fell despite very strong pork values. Traders may have just been taking profits from this big, long-lasting rally off the December lows. FOB Plant Pork soared 1.92 to 78.37 as loins rose 6%. This is much better than the midday quote of 77.10.

In the financial markets, U.S. equity markets dropped sharply on the extreme weakness in energy futures. As a result, investors fled to the safety of US Treasuries, driving down interest rates by about 0.11 points, or 5%.

Corn Mar +1 372; Jly +2 382; Dec +2 394 Bean Mar +5 886; Jly +7 895; Nov +7 897 Meal +4 275 Oil +3 3079 Wheat Mar unch 475; Jly -1 485 KC -1 465; MGE +1 496 Oats +3 200 Rice +17 1117

LC Feb +5 13572; Jun +52 12472; Aug +40 12100 FC Mar +7 15785; May +32 15630; Aug +15 15712 LH Feb -115 6420; Apr -160 6910; Jun -112 7980 Milk Feb +4 1392; Mar +9 1394

 

US$ -.2% 98.84 Dow -296 16154 -1.8% SP -36 1903 -1.9% NAS -103 4517 -2.2% Tran -205 6764 -2.9% VIX +2.00 21.98 +10%

WTI -191 2971 Brent -170 3254 Gas -10 98 NG -11 204 HO -3 101 Eth steady 142 Gold +1 1129 Slvr -3 1431

2-yr -.071 0.738% 5-yr -.112 1.271% 10yr -.114 1.852% 30yr -.117 2.664%

Lexington Auction (Tues) Weighted Average Report for 02/02/2016 Receipts: 451 Last Week: 709 Year Ago: 674 ****Lexington sale held at Mt. Sterling yards today however next Tuesday's Lexington sale will be held at Richmond yards**** Compared to yesterday all classes sold mostly steady with good demand. Yearlings sold steady in a light test. Quality was good through attractive. Slaughter cows and slaughter bulls sold 1.00 higher with moderate demand.

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