Market Closes - February 4, 2014

Posted on Feb 4, 2014
CBOT futures closed sharply higher as buying fed on itself throughout the day.  A variety of factors were supportive: strong demand for corn, soybeans and meal; declining condition ratings on US winter wheat; no change expected for the dry Plains’ wheat areas; fresh concern that Brazilian weather is turning dry which would trim yields; more short-covering in corn and wheat futures; and prices surpassed technical resistance in corn. A private firm estimated South American 2014 corn production at levels about 200 million bushels below USDA’s January forecast.

Cattle futures continue to work lower after boxed beef values have fallen so sharply the past week.  Today, beef was mixed -- Choice up 0.40 at 220.49; Select down 0.21 at 219.21/cwt.   The February Live Cattle contract is $5.00 below its high set 9 trading days ago.

Lean Hog futures closed slightly higher, recovering a portion of Monday’s big losses.  Pork values stabilized and have risen to last Thursday’s level.

The US Senate approved the Farm Bill today and now goes to President Obama.

Corn Mar +6 442 (434-42); Jly +6 453; Dec +6 459 Bean Mar +20 1313 (1291-1316); Jly +17 1279; Nov +2 1110 Meal Mar +13 447; Oct -1 349 Oil +26 3771 Wheat Mar +21 584; Jly +21 590 (566-91) KC +22 646; MGE +13 623 Oats +10 424 Rice +6 1536

LC Feb -77 13960; Apr -50 13890; Jun -20 13097 FC Mar -102 16697; Apr -90 16750; Aug -42 17002 LH Feb +35 8522; Apr +27 9312; Jun +20 10375 MILk Feb -6 2275; Mar -28 2054

US$ +.15% Dow +72 15445 SP +13 1755 NAS +35 4032 Tran +81 7135 VIX -2.33 19.11

WTI +119 9762 Brent -7 10597 Gas +1 261 NG +39 530 HO -1 299 Eth +3 187

Gold -5 1254 Slvr +9 1950

2-yr +.02 0.32% 5-yr +.03 1.47% 10yr +.05 2.63% 30yr +.06 3.60%

Blue Grass Stockyards Cattle Report for 02/04/2014

Receipts:  914   Last Tuesday:  418   Year Ago:  672

Compared to Monday’s sale steer and heifer calves sold steady to weak with moderate to good demand.  Yearling steers sold 2.00 to 3.00 lower than last week with moderate demand.  Quality plain through average.  Slaughter cows and slaughter bulls sold steady with good demand.  More severe winter weather predicted for next few days may have softened demand for lightweight calves. Total supply included 07% slaughter cows, less than 01% slaughter bulls, less than 01% replacements and 92% feeders.  Feeder supply 47% steers, 17% bulls, 36% heifers with 52% of feeders weighing over 600 lbs. 

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Tagged Post Topics Include: Economics, Market updates