Corn and wheat futures closed lower as this morning’s weekly export sales were disappointing. Improved rain prospects in parts of KS/NE also weighed. Rising estimates of Brazil’s corn crop amid weak demand added to negative momentum. March Corn closed below chart support and with the next level at 6.86 and 6.78. December Corn broke $5.70 chart support and hasn’t been this low since June 2012; the peak came in September at $6.65.

Soybean futures closed lower with biggest losses in the new-crop contracts due to the potential large supplies available post-South American harvest. Weekly export sales were very strong, so this limited losses in the March contract.

USDA WASDE report will be released at Noon EST tomorrow.

Except for the nearby February LC contract, cattle futures closed lower on demand concerns and a strong US dollar. The February LC was apparently lifted by continued optimism that packers will pay up this week for fed cattle. Weekly Beef exports hit a 6-week low at 9,724 MT vs. 12,053 MT reported last week. In boxed beef, Choice dropped and Select rose, resulting in a Choice-Select spread of only $2.33/cwt.

Nearby lean hog futures closed steady given its discount to the cash hog index.

Corn Mar -12 711 (710-722); Jly -13 702; Dec -12 566.5

Bean Mar -1 1487 (1478-1497); Jly -6 1462; Nov -12 1324   Meal Mar +.5 438; Oct -3 373   Oil -60 5185

Wheat Mar -5.5 756; Jly -9 763.5(761-772)   KC -9 801; MGE -5.5 839

LC Feb +30 12755; Jun -27 12702; Oct -30 13190 FC Mar -35 14720; Apr -35 15057; Aug -47 15895 LH Feb +7 8697; Apr +27 8652; Jly -80 9440 Milk Feb -3 1723; Mar -2 1736

Oats +4 381 Rice -8 1612

US$ +.6%

Dow -42 13944 SP -3 1509 NAS -3 3165 Tran +14 5887   VIX +.09 13.50

WTI -75 9587 Brent +78 11751 Gas -2.4 301.6 NG -13 329 HO +3 321 Eth -2 241

Gold -6 1672 Slvr -40 3148

2-yr +.008 0.262% 5-yr -.004 0.830% 10yr unch  1.959% 30yr +.008 3.174%

KENTUCKY CASH GRAIN BIDS – Click Here

Economic Reports     Weekly jobless claims fell 5,000 last week to a seasonally adjusted 366,000, according to the Labor Department. Economists surveyed by Reuters expected a reading of 368,000.   Productivity fell 2 percent in the fourth quarter, declining by the most in nearly two years, according to the Labor Department's preliminary reading.   And unit labor costs jumped at a 4.5 percent rate in the fourth quarter.  Economists expected productivity to slide 1.3 percent, while unit labor costs were estimated to climb 3.0 percent. 

Blue Grass Stockyards Cattle Weekly Summary Report for the week ending 02/07/13

Receipts:  1,403   Last Week:  1,591   Year Ago:  2,563    Compared to last week steer and heifer calves sold steady to 2.00 higher with good demand, featherweight calves under 400 lbs sold 3.00 to 5.00 higher with very good demand.  Yearling steers and heifers about steady with demand.  Slaughter cows and slaughter bulls sold steady to 1.00 higher with good demand.

   Total supply included 07% slaughter cows, 01% slaughter bulls, 03% replacements and 89% feeders.  Feeder supply 49% steers, 16% bulls, 35% heifers with 59% of feeders weighing over 600 lbs.