Market Closes - February 3, 2014

Posted on Feb 3, 2014
Good corn export sales reported this morning and continued optimism for US grain exports lifted CBOT futures.  Chart technical signals show there’s room for prices to rise more. March Corn has resistance at $4.41 and December Corn at $4.60.  March Soybeans has resistance at $13.00 where it was turned back today; if $13 breaks, then look for a run toward $13.30. The rally could be terminated if China starts cancelling US purchases to buy Brazilian soybeans once the Chinese New Year holiday ends Thursday. Corn and wheat futures are also finding support from short-covering.

Cattle futures closed sharply lower as boxed beef values dropped sharply for yet another day.  Retailers may have put beef features behind them after seeing the record high beef prices in January.  This could be an example of high prices destroying “demand”.  Choice beef was down 3.40 to 220.09 and Select down 5.43 to 219.42; Choice beef returned to a premium over Select beef.  Last week’s 5-area Weekly Avg Steer Price was $145.34, down about $3/cwt from the previous week.

Lean Hog futures also fell sharply in sympathy with cattle futures and the big drop in US equity prices resulting from weak manufacturing data.  The February LH contract posted its lowest close since August 2013. The Pork Cutout value increased today and hog prices were mixed.

Corn Mar +2 436 (433-39); Jly +3 447; Dec +3 453 Bean Mar +10 1293 (1278-1300); Jly +10 1262; Nov +4 1108 Meal Mar +8 434; Oct +2 350 Oil -19 3745 Wheat Mar +8 564; Jly +7 569 (560-69) KC +9 624;  MGE +7 611 Oats +9 415 Rice -10 1530

LC Feb -130 14037; Apr -102 13940; Oct -60 13267 FC Mar -142 16800; Apr -127 16840; Aug -90 17045 LH Feb -135 8487; Apr -195 9285; Jun -127 10355 Milk Feb -32 2279; Mar -75 2072

US$ -.3%

Dow -326 15373 SP -41 1742 NAS -107 3997 Tran -235 7054 VIX +3.03 21.44  (+16.5%)

WTI -82 9667 Brent -33 10607 Gas -2 261 NG +4 498 HO +1 301 Eth +1 190

Gold +17 1257 Slvr +20 1931

2-yr -.04 0.30% 5-yr -.06 1.44% 10yr -.07 2.58% 30yr -.07 3.53%

Blue Grass Stockyards Cattle Auction Report for 02/03/2014

Receipts:  803   Last Monday:  505   Year Ago:  731 Compared to last week steer and heifer calves sold steady with good demand despite overnight snowstorm that made for slow travel early morning.  Quality was mostly average to good.  Most of today’s offering were overnight cattle that arrived Sunday.  Slaughter cows sold steady with good demand.  Slaughter bulls sold 2.00 lower with moderate demand.  Yearling cattle not tested.  Winter weather on weekends has repeatedly slowed cattle movement for early week sales. Total supply included 09% slaughter cows, 01% slaughter bulls, 02% replacements and 88% feeders.  Feeder supply 38% steers, 23% bulls, 39% heifers with 33% of feeders weighing over 600 lbs.

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Tagged Post Topics Include: Economics, Market updates