Market Closes - January 14, 2019

Posted on Jan 14, 2019

Corn Mar unch 378 (377-81); Dec +1 402 (401-04)

Bean Mar -7 903 (901-11); Nov -5 946 (944-52)

  Meal -3 312

  Oil -1 2840

Wheat Mar -5 514; Jly -5 524 (524-33)

  KC -5 499; MGE -4 565

Oats +5 300

Rice -18 1058

 

LC Feb +45 12542; Jun -2 11717; Aug -30 11397

FC Jan -127 14485; Apr -60 14515; Aug -65 14925

LH Feb -80 6185; May -70 7217; Jun -97 7892

Milk Jan -2 1405; Feb -16 1433

After rallying for the first hour of trading (830 am opening), corn and soybean futures sold off through midday. This resulted in mostly lower closing prices which were at/near the day’s lows. Futures were pressured by a lack of USDA reporting on export sales and no indication that China is active in the market now. Soybean meal losses pressured soybean prices; soymeal was hurt by more cases of African Swine Fever (ASF) in China.

China’s soybean 2018 imports of 88 MMT is down 8% from 2017; it’s the first decline in Chinese soybean imports in 7 years. Corn and soybean futures are generally in the middle of the October-January trading range. However, on both corn and soybean charts, there are very distinct upward trendlines which could come into play for futures very soon. Will prices bounce of the trendline and go higher, or break below support and sink?

It was also reported today that China’s total exports and imports in December were below the year-ago estimates. U.S. equity markets were weaker today in part on concern for China’s economic growth and the world economy too. China’s trade surplus with the U.S. is reported at a record-large $32 billion for 2018.

Except for the February and April LC contracts, LC and FC futures closed lower with the nearby FC taking the biggest hit. Despite boxed beef values adding to Friday’s big losses, the $124/cwt cash trade from Friday kept buyers supporting Feb/Apr LC. Choice ended down .44 at 212.02 and Select dropped .81 to 205.46.

Lean Hog futures closed moderately lower although the pork cutout was up over $2.00 in the morning; but it only finished the day at 7119, up .23.  February LH futures are trading at a premium to the cash market. Traders anxiously wait for bullish news related to China buying US pork. Additional ASF cases were supportive.

US$ -.1%

Dow -86 23910

SP -14 2583

NAS -66 6906

Tran +6 9631

  VIX +.88 19.07

 

WTI -91 5100

Brent -128 5920

Gas -3 137

NG +47 357  +15%  Colder temps coming.

HO -2 186

Eth unch 129

Gold +2 1292

Slvr +3 1568

 

2-yr -.010 2.535%

5-yr -.001 2.524%

10yr +.002 2.701%

30yr +.015 3.051%

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