CBOT futures reversed yesterday’s price action. Corn closed lower with wheat/soybeans posting small gains. Corn was pressured when the EIA reported a large build in ethanol stocks. The funds were reportedly selling corn futures. CBOT futures were much stronger during the morning before losing significant ground between 11:00-11:20 am CT., then moved mostly sideways. Weekly export sales is reported Friday morning due to Monday’s holiday.

Cattle futures also reversed Wednesday’s losses and added to it as cattle futures traded as high as “limit up” at the 1 pm closing. During the afternoon, cattle futures set back 50-75 cents as the boxed beef market turned weaker than it was at noon. Choice carcasses ended down 2.28 at 227.67; Select down 1.06 at 223.08. At midday, Choice was only down 1.14. Today’s strong stock market was supportive. Traders are preparing for tomorrow afternoon’s Cattle on Feed report.

Lean hog futures closed strongly higher but not the limit-up type moves seen in cattle. Cattle and equities were supportive. LH futures keep adding to the uptrend, posting higher highs and higher closes. February continues to hold a sharp premium to the cash market and February is only 11 days away. Cash and futures should converge. FOB Plant Pork dropped .32 to 74.03.

Corn Mar -2 367 (365-72); Jly -2 377; Dec -1 389 Bean Mar +4 878 (872-86); Jly +4 884; Nov +5 887 Meal +2 272 Oil +13 2994 Wheat Mar +3 475; Jly +4 485 (480-89) KC +4 471; MGE +5 500 Oats -1 204 Rice +14 1098

LC Feb +300 limit 13025; Jun +285 12290; Oct +250 11987 FC Jan +367 15867; Apr +447 15445; Aug +422 15585 (limit=450) LH Feb +102 6375; Apr +195 6902; Jun +147 7930 Milk Jan -1 1374; Feb +6 1374

 

US$ -.1% Dow +116 15883 SP +10 1869 NAS steady 4472 Tran +64 6690 VIX -.90 26.69

WTI +150 2985 (high 3025) Brent +171 2959 Gas +2 104 NG +2 214 HO +4 91 Eth steady 136 Gold -5 1101 Slvr -6 1409

2-yr +.012 0.837% 5-yr +.027 1.442% 10yr +.047 2.029% 30yr +.055 2.811%

Lexington, KY - Blue Grass Stockyards Cattle Weekly Summary Report for the week ending 01/19/16 Receipts: 2,266 Last Week: 2,094 Year Ago: 3,356 **Total receipts include 819 head sold in CPH sale Wed. night ***CPH results attached at bottom of report Compared to last week steer and heifer calves sold steady to 5.00 lower with moderate demand on an average though attractive quality offering. Yearling steers sold 5.00 to 6.00 lower with light demand. Slaughter cows 5.00 higher early and slaughter bulls sold 2.00 to 3.00 higher with good demand.