Market Closes - January 2, 2014

Posted on Jan 2, 2014
A sharp drop in soy complex futures (especially soybean meal) weighed on corn and wheat markets.  Traders sold soybean futures based on recent rains in dry areas of South American soybean country.  Tuesday’s losses created a negative technical situation that encouraged additional long liquidation by the spec funds holding large long positions. Check the price charts for the next price level to offer support. November 2014 Soybeans haven’t been this low since the fall of 2011 and are $2.00 below contract highs made in September 2012.

Wheat in all three markets made new contract lows again today. No one wants to step in front of this bear.

Note that weekly export sales will be reported tomorrow due to New Years holiday.  Next week, traders will continue positioning ahead of the key USDA reports on Friday, January 10.

Cattle futures closed higher with strength favoring the nearby February Live Cattle contract.  There are news reports that fed cattle sold for record-high cash prices of $137/cwt in the Southern Plains and $138.50 in Nebraska. This is up about $3/cwt from last week. Boxed Beef values closed slightly lower.  Extremely cold temperatures will limit weight gains in feedlots.

Hog futures soared today with the February 2014 LH contract gapping up above Tuesday’s highest price.  Supporting hog futures were higher cash hog prices and a friendly seasonal price factor.  Pork values recovered from the sharp weakness seen at midday – FOB Plant Pork closed down 0.37 to $84.00/cwt.

US equity markets began 2014 with sharp losses; this is the first time since 2008 that the year started in the RED.

Corn Mar -1 420; Jly -1 436; Dec -2 448 Bean Mar -22 1270; Jly -18 1246; Nov -6 1129 Meal Mar -11 406; Jly -7 394; Dec -1 348 Oil -33 3880 Wheat Mar -8 597; Jly -8 608 KC -9 631; MGE -10 625 Oats -3 351 Rice +23 1551

LC Feb +100 13562; Apr +50 13580; Jun +25 12967 FC Jan +30 16700; Apr +12 16822; Aug +27 17057 LH Feb +165 8707; Apr +112 9180; Jun +92 10107 Milk Jan +37 1971; Feb +52 1919

US$ +.5%

Dow -135 16441 SP -16 1832 NAS -34 4143 Tran -113 7288 VIX +.51 14.23  +3.7%

WTI -299 9543 Brent –299 10781 Gas -9 270 NG +7 430 HO -7 299 Eth +2 182

Gold +20 1223 Slvr +63 2000

2-yr steady 0.39% 5-yr -.02 1.72% 10yr -.05 2.99% 30yr -.05 3.92% 

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Tagged Post Topics Include: Economics, Market updates