The soy market was on fire very early this morning (a spike on large short-covering above the old contract high), but sold off sharply in the last two hours of trading on rumors that China is cancelling U.S. purchases. The chart action is very negative but tomorrow’s close will be important to confirm the price reversal.

Corn and wheat futures posted large losses, pressured by the break in soy futures.  Wheat futures were also hurt by U.S. wheat being uncompetitive in world market.

Cattle futures also sold off late morning after surging higher early on Wednesday strong cash cattle and beef markets. Fed steers sold for $150-152/cwt this week.

Today, Choice carcasses up 2.46 at 221.41; Select up 2.33 at 219.00/cwt.

Lean Hog futures closed sharply higher and near the day’s highs on strong cash hog and pork markets. FOB Plant Pork traded 2.30 higher to $102.90/cwt. This is $5/cwt higher than last Friday’s quote. Today’s gains were fueled by loins, hams and bellies.  Lean Hog futures held on to gains even as cattle futures weakened. This may have been aided by more market participants learning that Russia will restart U.S. pork imports in March. (this could change if Russia-U.S. relations become strained over Ukraine).

** Note the extremely wide trading ranges ** Corn Mar -7 448; Jly -6 458; Dec -5 461 Bean Mar -14 1393 (1392-1452); May -7 1390; Jly -6 1367; Nov -14 1155 (1154-82) Meal Mar -4 464 (462-84); Oct -3 364 Oil -30 4090 (4083-4170) Wheat Mar -18 582; Jly -15 596 (595-612) KC -17 662;  MGE -15 655 Oats +4 510 Rice -19 1541

LC Feb +135 15005; Apr -7 14445 (hi 14597); Oct unch 13580 FC Mar -17 17182 (hi 17265); Apr -55 17337; Aug -17 17590 LH Apr +282 10385; Jun +155 10990; Oct +12 9245 Milk Mar +31 2223; Apr +49 2097

US$ -.15%

Dow +74 16273 SP +9 1854 NAS +27 4319 Tran +43 7316 VIX -.31 14.04

WTI -19 10240 Brent -68 10884 Gas -4 276 NG -24 485 HO -4 309 Eth unch 223

2-yr -.01 0.325% 5-yr -.02 1.48% 10yr -.02 2.64% 30yr -.03 3.59%

Check out the February 26 issue of the UK Dept of Ag Economics’ ECONOMIC AND POLICY UPDATE: http://www2.ca.uky.edu/cmspubsclass/files/AgEconPolicyUpdateFeb2014.pdf

KFB 2014 Farm Chemical Price List  - Click HERE   Ordering deadline is Friday, February 28

KENTUCKY CASH GRAIN PRICES – Click Here

KENTUCKY LIVESTOCK AUCTIONS --  Click Here