The indecisive election results in Italy and no progress in avoiding sequestration may have scared investors out of equities and into the safety of US Treasuries. Treasury yields fell sharply. The VIX Index soared.

November 2013 Soybean futures bottomed today at the November low – this makes $12.55 a critical support level to hold. The next support is $12.25. March Soybeans have support at the $14.28-32 chart gap from last week. Soybean futures cut losses by a strong rally in the last 5-10 minutes of pit trade.

December Corn dropped to a new low for the move. There’s probably chart support every 10 cents below $5.50.

Wheat futures closed near the lows of the day as soil moisture in the Plains states is improving and more moisture is expected. The weakening of the La Nina-like condition has apparently allowed more moisture to flow into this area. Of the 16 trading days in February, 12 of them have seen July CBOT Wheat close lower, for a total loss of 83 cents/bushel.

Nearby Live Cattle futures closed higher on Friday’s stronger cash market and the productivity losses caused by the winter storm. Fed cattle sold for $125/cwt Friday, up $2/cwt from early week trade. Beef cutout values held steady today.

Lean Hog futures closed near steady after starting the day lower on last week’s weak cash hog market. However, perceptions changed midday so short-covering ensued. The April Lean Hog contract posted a bullish “hook reversal”. Today’s price gain breaks a 9-day streak of lower prices.

Corn Mar +3 693.5 (687-695); Jly unch 671.5; Dec -2.5 550 Bean Mar -10 1451 (1438-1470); Jly -7 1422; Nov -1 1265.5 (1255-1275) Meal Mar -1 425.6; Oct -1 351.4   Oil -28 5007 Wheat Mar -16 699; Jly -13.5 710 (709-727)   KC -18 731.5; MGE -16 787

LC Feb +60 12695; Apr +20 12842; Oct +10 12990 FC Mar -45 14080; Apr -7 14370; Aug -12 15415 LH Apr +25 8190; Jun +10 9105; Oct -12 8187 Milk Mar -30 1694; Apr -31 1696

Oats -10.5 377.5 Rice -16.5 1542

 US$ +.3% 81.72 Dow -216 13784 SP -28 1488 (chart support= 1475) NAS -46 3116 Tran -128 5816   VIX +4.82 18.99 (+34%)

WTI -99 9214 (9207-9446) Brent -67 11343 Gas -4.5 303.4 (303.3-314.3) NG +12 341 HO -2.5 308 Eth +1 237

Gold +20 1593 Slvr +48 2894

2-yr -.01 0.24% 5-yr -.07 0.76% 10yr -.10 1.86% 30yr -.09 3.06%

CROP INSURANCE   As of tonight, USDA has calculated the average February futures price to be used in setting the base price for crop insurance is:    Corn = $5.67    Soybean = $12.93    Grain Sorghum = $5.55 Each of these prices is one cent lower than Friday night. With current futures prices below these averages, it’s likely the final base price will also be lower. 

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