Market Closes - February 4, 2013

Posted on Feb 4, 2013
CBOT futures closed about where they traded at midday. The day’s highs came during the opening hour of pit-trade on disappointing weekend rainfall in South America. But disappointing export inspections for corn and wheat ended up weighing down the CBOT, although soybeans posted good gains on soybean meal strength. A much stronger US dollar and falling energy futures added pressure as well. Funds sold corn and wheat, but bought soybean futures.

USDA updates to world supply-demand estimates (WASDE) will come out Friday.

Cattle futures closed little changed after rallying strongly early in the day in response to Friday’s friendly Cattle Inventory Report. Click here for report.

However, the recent weakness in boxed beef values and last week’s beef production increase of 6.5% over a year ago proved too much. An upcoming Russian ban on U.S. beef and pork is a negative factor.

Equity markets sold off and money flowed back into Treasuries on a risk-off trade. After stocks approached all-time highs to end last week, today saw the worst stock performance for 2013.

Corn Mar -2 734; Jly -1 727.5; Dec +2 594 Bean Mar +14.5 1489; Jly +15 1470; Nov +11.5 1344   Meal Mar +6 434; Oct +7 378   Oil +12 5311 Wheat Mar -2 763; Jly -2 776; Dec -2 802   KC -5 817; MGE -5 847

LC Feb -2 12707; Jun +25 12800; Oct +25 13325 FC Mar -32 14887; Apr +27 15240; Aug +47 16055 LH Feb +42 8807; Apr -40 8835; Jly -32 9740 Milk Feb -8 1710; Mar -20 1706

Oats unch 360 Rice +35 1591

 US$ +.5%

Dow -130 13880 SP -17 1496 NAS -48 3131 Tran -37 5820 VIX +1.77 14.67 (13.7%)

WTI -161 9616 Brent -118 11558 Gas -3.5 302 NG +3 333 HO unch 316 Eth -1.6 246

Gold +4 1674 Slvr -20 3176

2-yr -.011 0.250% 5-yr -.033 0.839% 10yr -.055 1.960% 30yr -.054 3.161%

Blue Grass Stockyards Cattle Auction Report 2/04/2013 Receipts:  731   Last Monday:  819   Year Ago:  949    Compared to last week, steer and heifer calves sold mostly steady with good demand, except featherweight calves under 400 lbs 3.00 to 5.00 higher with very good demand. Yearling steers not tested. Yearling heifers limited comparison.  Slaughter cows and slaughter bulls sold steady.    Total supply included 10% slaughter cows, less than 01% slaughter bulls, 05% replacements and 84% feeders.  Feeder supply 21% steers, 21% bulls, 58% heifers with 45% of feeders weighing over 600 lbs. 

Marketing Assistance Loans and Loan Deficiency Payments Continued for the 2013 Crop Year    Lexington, Feb. 4, 2013—The marketing assistance loan (MAL) and loan deficiency payment (LDP) provisions authorized in the Food, Conservation and Energy Act of 2008 (the 2008 Farm Bill) have been extended for the 2013 crop year with the passage of the American Taxpayer Relief Act of 2012.   MALs and LDPs provide financing and marketing assistance for wheat, rice, feed grains, soybeans and other oilseeds, peanuts, pulse crops, cotton, honey and wool. Assistance is available to eligible producers beginning with harvest or shearing season and extending through the program year. The 2013 mohair crop is not eligible for MALs or LDPs because mohair provisions were suspended by the Consolidated and Further Continuing Appropriations Act of 2012 and the Continuing Appropriations Resolution, 2013.    MALs provide producers interim financing at or after harvest to help them meet cash flow needs without having to sell their commodities when market prices are typically at harvest-time lows. A producer who is eligible to obtain a loan, but agrees to forgo the loan, may obtain an LDP if such payments are available.     For more information about marketing assistance loan and loan deficiency payments, please visit your FSA county office or FSA’s website at http://www.fsa.usda.gov/pricesupport.

Tagged Post Topics Include: Economics, Market updates