Market Closes - January 14, 2014

Posted on Jan 14, 2014
CBOT futures closed mixed.  Soybean meal stepped up again as the strongest commodity with almost 2 percent gains. Soybean futures backed off the day’s highs at the close.  Today’s strength is credited to strong cash demand for meal and soybeans and a warmer/drier forecast for Argentina. At least one crop expert has reduced production forecasts for Argentina.  March Soybeans has chart resistance at 13.40 and 13.53. March Corn has resistance at 4.36 and 4.41.

Corn closed about mid-range today with a late-day rally. It appears the buying power has dried up, at least temporarily, after a huge rally Friday/Monday that topped at the late December highs. Farmers were reportedly selling cash corn today, creating hedge pressure in futures.

Chicago Wheat futures closed slightly higher for a second day.  KC March Wheat hit a new contract low early and then proceeded to close sharply higher, charting a “key reversal UP”.  Recent export business and this technical reversal may indicate a short-term bottom in wheat futures. Dryness in the So. Plains is getting more attention although it’s early for true impact.

Live Cattle futures closed strongly higher with the February LC contract hitting new contract highs.  Additional gains in beef values gave traders confidence to buy CME cattle futures. Choice up 4.10 at 221.04; Select up 4.59 at 219.35/cwt.  Wish my freezer was full of beef.

Looks like hog traders and pork buyers decided to buy hog futures figuring meat demand will be shifting to less expensive pork (and chicken). Cash demand for some pork items also picked up.  The FOB Plant Pork Cutout soared $2.73 to $85.90/cwt on a $7.41 jump in picnic value and $6.89 in belly value. Cash hog prices have not picked up yet and remain at a big discount to February LH futures – something has to give.

Corn Mar -3 431; Jly -3 446; Dec -2 456 Bean Mar +13 1307; Jly +12 1273; Nov +5 1119 Meal Mar +8 430 (420-35); Oct +2 351 Oil -8 3810 Wheat Mar +6 579;  Jly +6 593 (584-94) KC +12 632;  MGE +3 621 Oats -3 390 Rice -13 1550

LC Feb +105 13765; Apr +72 13780; Oct +25 13180 FC Jan +77 16860; Apr +45 16797; Aug +45 17017 LH Feb +62 8600; Apr +30 9067; Jun +20 10090 Milk Jan +8 2074; Feb +53 2100

US$ +.1%

Dow +116 16374 SP +20 1839 NAS +70 4183 Tran +94 7456 VIX -1.00 12.28  -7.5%

WTI +87 9267 Brent -61 10614 Gas -2 261 NG +7 434 HO steady 294 Eth -3 192

Gold -6 1245 Slvr -14 2024

2-yr +.02 0.39% 5-yr +.05 1.65% 10yr +.04 2.87% 30yr +.03 3.80%

Lexington, KY - Blue Grass Stockyards Cattle Report for 01/14/2014

Receipts:  1,644   Last Monday:  31   Year Ago:  1,429

Compared to Monday’s sale steer and heifer calves sold steady with very good demand on an average to good quality offering. Yearling steers no comparison with yesterday’s light test. Yearling heifers sold steady in a limited comparison.  Slaughter cows sold 1.00 lower with good demand.  Slaughter bulls sold steady with good demand.  Very active market this week with many good quality calf offerings. Total supply included 05% slaughter cows, less than 01% slaughter bulls, less than 01% replacements and 94% feeders.  Feeder supply 53% steers, 07% bulls, 40% heifers with 64% of feeders weighing over 600 lbs.

KY Pest News newsletter from University of KY http://www2.ca.uky.edu/agcollege/plantpathology/extension/kpn/current.html

-UK Soybean Cyst Nematode Analysis Services Suspended Indefinitely -Upcoming IPM Training GRAINS -National Survey on Wheat and Barley Fusarium Head Blight FRUIT -Spotted Wing Drosophila Management in 2014 SHADE & FOREST TREES -Nature’s Impact on Invasive and Native Insects POLLINATORS -New Pollinator Protections on Admire Pro Label LIVESTOCK   -Lice: An Additional Potential Stress on Livestock   -Maggots Are Sign of Wet Hay

KENTUCKY CASH GRAIN BIDS Click Here

Tagged Post Topics Include: Economics, Market updates