Market Closes - January 11, 2017

Posted on Jan 11, 2017

CBOT futures closed mostly lower as traders prepared for tomorrow’s USDA reports on grain stocks, wheat seedings, and US/World Supply-Demand. Corn futures sold off sharply until mid-morning and then recovered most of the day’s losses on a strong close. Soybeans did the same thing with the help of a strong soybean oil futures market from the rally in crude oil. Wheat futures followed corn and beans but the losses were bigger and the recovery only made it back to mid-range. Wheat was pressured by forecasts for beneficial rain in the southern Plains this weekend. Another negative was China increasing import duties on US DDG.

Technically, soybean futures are above the 200-day moving averages, but are just below the 20-day average. Hopefully, the USDA reports will provide the fuel to push prices higher. March Soybean price is right in the middle of the 30+ cent range dictating chart support and resistance.

 

Cattle futures closed lower and in relatively narrow price ranges. This comes after the sharp price gains on Monday and Tuesday. Traders are optimistic on stronger cash cattle prices this week, but a sharp drop in boxed beef values this week is a negative. Choice carcasses down 3.99 at 189.39; Select down 2.02 at 187.95. Choice beef was 203.65 a week ago, or $14.26 higher than tonight. Granted, last week had the highest Choice beef quote in months. The drop in beef values erases much of their week-ago profit margin discussed in the next paragraph. The online Fed Cattle Exchange sold 4046 head for an average $119.16 (119-120).
 

As reported on cattlenetwork.com, cattle feeders recorded their seventh consecutive week with positive closeouts, maintaining profits north of $150 per head for the week ended Jan. 6.  Packers saw their margins slip $18 per head, but profits remain above $130, according to the Sterling Beef Profit Tracker.  A month ago cattle feeders were earning $39 per head, while a year ago losses were calculated at $241 per head.   Read entire comments at:

http://www.cattlenetwork.com/news/markets/profit-tracker-feedyard-margins-exceed-150


Lean Hog futures closed slightly higher on stronger cash hog prices and a sharp jump in the pork cutout value that more than erased Tuesday’s drop. FOB Plant Pork soared 2.46 to 80.68 as ham value increased 12% and bellies gained 3%. The midday cutout value was up 3.27.  LH futures would have closed even stronger, but profit-taking kicked in during the last 30 minutes.

Corn Mar -1 357; Jly -1 371; Dec -1 386 (381-86)

Bean Mar -2 1011; Jly -2 1028; Nov -2 998 (987-1000)

   Meal -3 315

  Oil +36 3600

Wheat Mar -8 419; Jly -7 447 (440-53)

  KC -6 432; MGE unch 561

Oats +5 232

Rice -6 961

 

LC Feb -40 11912; Jun -7 10777; Aug -12 10320

FC Jan -65 13205; Apr -47 12907; Aug -47 12797

LH Feb +55 6560; Apr +17 6950; Jun +2 7825

Milk Jan +9 1679; Feb -12 1730

 

US$ -.3%

Dow +99 19954

SP +6 2275

NAS +12 5564

Tran +91 9186

  VIX -.23 11.26

 

WTI +155 5237

Brent +158 5522

Gas +5 160

NG +2 329

HO +5 166

Eth -1 149

Gold +6 1191

Slvr -9 1676

 

2-yr -.005 1.189%

5-yr +.002 1.881%

10yr -.009 2.370%

30yr -.019 2.952%
 

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