Market Closes - January 12, 2021

Posted on Jan 12, 2021

Corn Mar +25 limit 517; Jly +25 516; Dec +17 457

Bean Mar +46 1418 (1358-1428); Jly +41 1399; Nov +21 1176

  Meal Mar +19 465 (444-469)

  Oil Mar unch 4263

Wheat Mar +30 665; Jly +22 651 (628-54)

  KC +28 622; MGE +15 621

Oats +7 362

Rice +26 1284

 

LC Feb -92 11247; Apr -70 11765; Jun -2 11492

FC Jan -277 13322; Apr -277 13625; Aug -170 14565

LH Feb +2 6850; Apr +57 7352; Jun +97 8497

Milk Jan -16 1639; Feb -75 limit 1868; Mar -75 1830

CBOT futures closed sharply higher in response to the bullish USDA crop/S&D reports. Corn traded up the 25-cent daily limit; limit is 40 cents on Wednesday. USDA dropped average yield by 3.8 bu/ac to 172.0 bu/ac and cut harvested acreage by 60,000 acres; this shrunk corn production by 325 million bushels to 14.18 billion. Both corn production and December 1st stocks came in below even the lowest private trade estimate. First-quarter corn disappearance was record large. USDA lowered the average soybean yield by 0.5 bu to 50.2 bu/ac. USDA cut the 2020/21 ending stocks estimate by 35 million to 140 million bushels, just about what traders expected. The strength translated to the soybean meal market, but not to soybean oil. It will be interesting to see if today’s bullishness will hold up the rest of the week. Focus will turn to South American weather and China’s purchases. Wheat mostly benefitted by spillover buying from the corn and bean markets.

Cattle futures closed mixed in live cattle but sharply lower in feeder cattle due to the soaring corn price. Higher feed prices actually supported deferred live cattle futures. Nearby weakness in LC futures was tied to February’s premium to last week’s cash trade. This week’s negotiated trade has been light with some weakness apparent. Choice beef gained 1.45 to 209.14 and Select rose 2.35 to 198.09.

Lean hog futures closed near steady in February LH and a dollar plus in deferred contracts. February is weighed down by very heavy slaughter rates and its large premium to the cash hog market. Deferred LH rallied on the prospect of higher feed costs leading to fewer hogs/pork in the fall. Compared to a morning gain of 1.58, FOB Plant Pork dropped 4.19 to 79.19 by midday. Ham value fell 14 to 71; picnics fell 5.5 to 52.58.

 

US$ -.5% 90.06

Dow +60 31069

SP +2 3801

NAS +36 13072

Tran +182 13052

  VIX -.75 23.33

 

WTI +97 5324

Brent +92 5658

Gas +3 155

NG +1 275

HO +2 160

Eth unch 152

Gold -7 1844

Slvr +15 2543

 

2-yr +.002 0.147%

5-yr +.001 0.499%

10yr -.005 1.129%

30yr -.005 1.873%

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