CBOT futures closed sharply higher as the spec funds were big buyers across the board, but especially in the soy complex. Analysts said buying increased as prices broke above the respective 10-day moving averages. Besides the generally bullish USDA report day last Friday, traders are talking about drier weather in Argentina which could trim yields there. China bought US soybeans. In corn and soybean futures, the old-crop contracts gained on the new-crop ones which is bullish and indicative of cash-market strength. The rally may take a break as the March Corn contract has recovered 50 pct of its December-January collapse. The March Soybean contract is nearing the 50 pct retracement mark as well. March Wheat has rallied for two days but remains in a downtrend with resistance at $7.88.

Cattle futures closed mostly lower as the cash cattle and boxed beef markets have weakened of late. Last week, feedlots sold cattle for $2-3/cwt below the previous week. The Choice-Select Spread narrowed sharply today with Choice down 0.15 at $194.09 and Select up 1.27 at $184.76. One might conclude U.S. consumers won’t be buying more steaks now that their FICA Payroll Tax jumped 2 percentage points on January 1^st, resulting in most families having several hundred dollars less to spend than in 2011 and 2012.

Lean Hog futures closed higher on stronger cash hog prices today and from last week’s chart action finding support just above $84 in the March contract. The Pork Cutout value dropped 48 cents to $83.42/cwt.

Corn Mar +15 724; Jly +15 714; Dec +7 584

Wheat Mar +12 767; Jly +10 777   KC +16 823; MGE +7 853

Bean Mar +45 1418; Jly +41 1399; Nov +20 1286   Meal Mar +13 417.5;  Oct +6 366   Oil +121 5045

LC Feb -25 13035; Jun -5 12965; Oct -17 13332 FC Jan -42 14945; Apr -7 15330; Aug +40 16057 LH Feb +102 8522; Apr +72 8785; Jly +62 9690 Milk Jan +6 1812; Feb -3 1758

Oats +7 354

Rice -16 1506

 US$ -.1%

Dow +19 13507 SP -1 1471 NAS -8 3118 Tran +28 5600    VIX +.16 13.52

WTI +64 9420 Brent +130 11194 Gas +1 275 NG +5.5 338 HO +6 307 Eth +4 233

Gold +7 1669 Slvr +66 3106

2-yr +.004 0.257% 5-yr -.013 0.768% 10yr -.021 1.849% 30yr -.008 3.034%

Blue Grass Stockyards Cattle Auction Report for 01/14/2013

Receipts:  1,029   Last Monday:  1,449   Year Ago:  1,399

   Compared to last week, steer calves sold 2.00 to 3.00 lower with moderate demand. Heifer calves sold 2.00 to 4.00 lower with moderate demand.  Yearling steers and heifers lightly tested.  Slaughter cows sold 3.00 to 5.00 lower in a light test with light demand.  Slaughter bulls sold steady with moderate demand.    Total supply included 04% slaughter cows, less than 01% slaughter bulls, less than 01% replacements and 95% feeders.  Feeder supply 30% steers, 21% bulls, 49% heifers with 46% of feeders weighing over 600 lbs.