Market Closes - January 15, 2014

Posted on Jan 15, 2014
CBOT futures closed mixed with serious losses in corn and wheat.  Overall the stronger US dollar is negative for ag exports.  Corn was pressured by reported heavy farmer selling of cash corn this week, renewed concerns about China’s rejection of DDG import shipments and a big drop in ethanol production last week.

Most wheat contracts lost more than they gained Tuesday with the MGEX March hitting a new contract low. Wheat was pressured by the losses in the corn pit and news that India expects to produce a record-large wheat crop this year – maybe 100 mmt compared to 92.5 mmt last year.

Old-crop soybeans rallied throughout the day as fundamental news was supportive – an export sale to China, less rain expected for key Argentina area, and a record-large monthly soybean crush report from NOPA.  New-crop soybeans hit the day’s lows early morning and then followed the old-crop up but couldn’t post a positive close.  The consensus is a huge soybean supply will exist in the world by next fall.

Looks like the beef buyers are caught short and/or are panicking to get beef supplies. Boxed beef values soared again today with Choice carcasses up 3.58 at 224.62 and Select carcasses up 2.56 at 221.91/cwt.  Cash cattle traded early this week, going for $2-3/cwt higher prices.   The February Live Cattle rallied $2.52/cwt right into the final moment of electronic trading.  

Lean Hog futures closed higher with support from the soaring Live Cattle market. Gains were limited by weakness in the pork cutout value today.

Corn Mar -6 426 (425-31); Jly -6 440; Dec -5 451 Bean Mar +11 1318; Jly +8 1281; Nov -1 1118 Meal Mar +4 434; Oct -2 349 Oil +23 3833 Wheat Mar -11 568; Jly -12 581 (580-93) KC -11 620;  MGE -7 614 Oats +3 393 Rice +16 1564

LC Feb +177 13942 (13805-13965); Jun +82 13112; Oct +85 13265 FC Jan +80 16940; Apr +90 16887; Aug +62 17080 LH Feb +60 8660; Apr +87 9155; Jun +30 10120 Milk Jan +10 2082; Feb -6 2095

Cattle futures continued to rally to RECORD HIGHS after the pit trade closed (shown above) LIVE CATTLE: February +252 14017; Jun +130 13160. FEEDERS: Jan +100 16960; Apr +127 16925

US$ +.5%

Dow +108 16482 SP +10 1848 NAS +32 4215 Tran +48 7504 VIX unch 12.28

WTI +158 9417 Brent +61 10700 Gas steady 263 NG steady 432 HO +4 298 Eth -1 191

2-yr +.02 0.41% 5-yr +.03 1.68% 10yr +.02 2.89% 30yr +.02 3.825%

January 17 is Deadline to Submit Ballots for Farm Service Agency County Committee Elections     Jan. 15, 2014 – USDA Farm Service Agency (FSA) State Executive Director, John W. McCauley, reminds farmers, ranchers and other agricultural producers that they have until this Friday, Jan. 17, 2014, to return completed ballots to FSA. Eligible voters who have not received a ballot can obtain one from their local USDA Service Center. The last day for voters to submit completed ballots in person to local USDA Service Centers is Jan. 17, 2014. Ballots returned by mail must be postmarked no later than Jan. 17. 

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Tagged Post Topics Include: Economics, Market updates