Market Closes - January 24, 2014

Posted on Jan 24, 2014
CBOT futures closed trading with prices across the spectrum – lower wheat, steady corn, higher soybeans. Soybeans moved higher all day after USDA released the weekly export sales report which was positive for soybeans and corn. Soybean oil traded down sharply to new contract lows but closed above the previous contract low. March Soybeans bottomed today near chart support established on January 2.

Corn futures decided mid-morning to tag along with the soybean rally to set the day’s high shortly before the closing bell.   Wheat futures reversed yesterday’s gains so wheat futures are again near key chart support and contract lows. Wheat was pressured on spread trading with corn and soybeans.

Live Cattle closed lower across the board as boxed beef was weaker for the second day in a row.  Choice down 1.29 at 237.26; Select down 0.68 at 236.25/cwt.  The Cattle on Feed showed more placements during December than expected resulting in a slightly larger January 1st on-feed inventory.  The COF Report is shown later in this report.

CME Lean Hog futures closed higher with support from about 50-cent gains in the pork cutout and in the CME Lean Hog Index (cash hogs). Summer LH futures made new contract highs on concerns that PED Virus is hurting herd productivity.

Financial markets were turbulent today as investors are very worried about the sudden drop in emerging market currencies and in the negative economic activity in China. The sharp losses in the US stock market, which closed on the day’s lows, could encourage more selling come Monday.  The FOMC meets next week on January 28-29 and investors want to know if the “Fed tapering” will continue.

Corn Mar unch 429 (425-30); Jly unch 441; Dec unch 449 Bean Mar +8 1285 (1263-87); Jly +7 1258; Nov unch 1109 Meal Mar +7 426; Oct +3 350 Oil -32 3754 Wheat Mar -5 565; Jly -5 577 (575-85) KC -5 627; MGE -4 613 Oats +7 396 Rice -1 1542

LC Feb -52 14340 (14270-14365);    Apr -50 14010; Oct -27 13292 FC Jan +32 17070 (16995-17072); Apr -87 16947; Aug -65 17132 LH Feb +80 8637; Apr +107 9402; Jun +25 10235 Milk Feb +8 2243; Mar +1 2046

US$ steady

Dow -318 15879 SP -38 1790 NAS -91 4128 Tran -311 7259 VIX +4.37  18.14  (+32%)

WTI -43 9689 Brent +34 10792 Gas +1 267 NG +44 517 HO +9 317 Eth -3 177

Gold +8 1270 Slvr -11 1990

 Yields on Jan 2nd in ( )  2-yr -.01 0.36% (0.39) 5-yr -.05 1.55% (1.72) 10yr -.06 2.72%  (2.99) 30yr -.05 3.635% (3.92)

Kentucky Weekly Livestock Summary for January 17-23, 2014 Receipts This Week   Last Week   Last Year 22,435      37,104      19,302 Compared last week, Steer Calves sold mostly steady with good demand.  Heifer Calves were 3.00 to 5.00 higher with very good demand.  Feeder Steers steady to 3.00 higher with very good demand and Feeder Heifers 3.00 to 5.00 higher with very good demand.  Snow and bitter cold this week made travel difficult restricting the movement of cattle.  Slaughter Cows sold steady to 3.00 lower moderate to good demand and Slaughter Bulls 3.00 to 5.00 lower with moderate demand.

Supply:  Slaughter Cows 8 percent; Slaughter Bulls 1 percent; Feeder cattle 89 percent.  In the feeder supply, Steers made up approximately 42 percent and Heifers approximately 35 percent.  Steers and Heifers over 600 lbs totaled approximately 43 percent. Replacement cattle 2 percent.

United States Cattle on Feed Down 5 Percent Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.6 million head on January 1, 2014. The inventory was 5 percent below January 1, 2013. The inventory included 6.78 million steers and steer calves, down 4 percent from the previous year. This group accounted for 64 percent of the total inventory. Heifers and heifer calves accounted for 3.73 million head, down 8 percent from 2013.

Placements in feedlots during December totaled 1.68 million, 1 percent above 2012. Net placements were 1.60 million head. During December, placements of cattle and calves weighing less than 600 pounds were 485,000, 600-699 pounds were 420,000, 700-799 pounds were 391,000, and 800 pounds and greater were 385,000.

Marketings of fed cattle during December totaled 1.74 million, 1 percent below 2012.

Other disappearance totaled 77,000 during December, 4 percent above 2012.

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Tagged Post Topics Include: Economics, Market updates