CBOT futures traded both higher and lower today and posted mixed closes. Traders were torn between friendly news of good export sales and limited farmer sales and the oncoming bearishness of huge crops in South America. While corn futures settled near the day’s highs, wheat futures finished at/near the day’s lows.  Old-crop soybean contracts managed mid-range closes, but new-crop soybeans finished the day weak near the lows (also Friday’s lows).  November 2014 Soybean’s key support is $10.95 – the low set on January 10.

Although the US Dollar Index was near unchanged today, the recent Emerging Market currencies’ weakness could impact global grain trade.   While the weakness makes the EM countries’ products cheaper on the world market, the fear that the currency gets even cheaper makes EM farmers less likely to sell.  The crops are an asset offering some protection against inflation.  Argentina is having more currency issues than Brazil.

Cattle futures closed mixed with mostly small price changes. The day started with selling tied to last week’s price weakness and the Cattle on Feed Report, but the buyers stepped in to rally the market. Support came from rising boxed beef values which increased 80 cents and packer bids of $148.  Feeder Cattle futures closed at/near the day’s highs.

Nearby Lean Hog futures dropped sharply as traders begin to lose hope that cash hog prices will do the work to close the large price spread between cash and futures. The $1.50/cwt jump in the Pork Cutout could lift cash hog prices tomorrow.   Summer hog futures remain near the contract highs as traders worry about productivity losses from PED virus.

Corn Mar +2 432 (427-33); Jly +2 444; Dec +3 452 (447-53) Bean Mar +3 1288 (1279-93); Jly -1 1256; Nov -8 1101 (1101-11) Meal Mar +5 431; Oct -1 348 Oil -48 3706 Wheat Mar -2 563; Jly -2 575 KC -5 622;  MGE -6 606 Oats +4 401 Rice +5 1548

LC Feb -25 14315; Apr +45 14055; Oct +12 13305 FC Jan +27 17097; Apr -7 16940; Aug -25 17107 LH Feb -80 8557; Apr +27 9430; Jun -2 10232 Milk Feb +34 2279; Mar +29 2076

US$ +.05%

Dow -41 15838 SP -9 1782 NAS -45 4084 Tran -60 7199 VIX -.72 17.42   -4%

WTI -101 9563 Brent -90 10698 Gas -4 262.5 NG -28 490   -5.4% HO -5 309 Eth -2 176

2-yr +.01 0.36% 5-yr +.025 1.58% 10yr +.03 2.75% 30yr +.03 3.67%

Grain Storage Capacity  The January Grain Stocks Report included data on grain storage as of December 1.  For Kentucky, ON-FARM storage totaled 200 million bushels, unchanged from a year earlier.  For OFF-FARM storage, there were 74 million bushels of capacity, up 2 million from 2012.  The number of storage facilities decreased by 5 to 155. The U.S. saw a 1.4 pct increase in off-farm storage to 10.43 billion bushels and a 0.5 pct increase in on-farm capacity.

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