CBOT futures closed steady to lower on profit-taking following yesterday’s big surge and from increased rain expectations in South America. Traders are “treading water” waiting for more reliable production estimates and updated supply/demand forecasts for 2013. Corn and soybean futures have already rallied a lot since the early January lows were set and need more “bullish” news.

Live Cattle futures closed lower even though feedlots sold cattle at $125/cwt, up $3 from last week. February’s premium to cash makes it vulnerable to going lower, especially in light of boxed beef’s continued weakness -- Choice dn 1.44 at 185.32; Select dn 0.77at 180.25.

Nearby February Lean Hog futures closed moderately higher on stronger cash hog markets. The Pork Cutout value fell another 42 cents today to $85.04/cwt. This trend is bad for pork packer margins.

Corn Mar unch 740.5; Jly +1 733; Dec -2 591 Bean Mar -10 1468; Jly -8 1449; Nov -5 1328 (1315-1338)   Meal Mar -6 426; Oct -5 369.5   Oil +26 5286 Wheat Mar -7 780; Jly -7 793   KC -3 838; MGE -4 865

LC Feb -37 12762; Jun -22 12830; Oct +32 13335 FC Mar +45 14955; Apr +47 15257; Aug +27 16025 LH Feb +50 8760; Jly -2 9807 Milk Feb +13 1720; Mar +27 1698

Oats -2 360 Rice +10 1550

 US$ -.1%

Dow -50 13860 SP -4 1498 NAS unch 3142 Tran +20 5804   VIX -.04 14.28

WTI -53 9741 Brent +71 11561 Gas -1 303 NG steady 334 HO +1 313 Eth unch 246

Gold -16 1664 Slvr -83 3135

5-yr +.008 0.881% 10yr -.009 1.990% 30yr -.015 3.174% 

Blue Grass Stockyards Cattle Weekly Summary Report for the week ending 01/31/13   Receipts:  1,591   Last Week:  2,439   Year Ago:  2,192

   Compared to last week steer calves sold 2.00 to 4.00 higher with good demand. Heifer calves sold 3.00 to 5.00 higher with good demand.  Yearling steers sold 2.00 to 3.00 higher with good demand. Yearling heifers light test.  Slaughter cows and slaughter bulls sold steady with good demand.

   Total supply included 06% slaughter cows, 01% slaughter bulls, 01% replacements and 92% feeders.  Feeder supply 31% steers, 21% bulls, 48% heifers with 48% of feeders weighing over 600 lbs. 

UK researchers study the effects of grazing wheat in winter     PRINCETON, Ky., (Jan. 31, 2013) – Extending the grazing season is good for herd health and is cost effective. But it is difficult to do in the winter when very few grasses are growing. University of Kentucky College of Agriculture researchers are studying the effects of cattle grazing wheat that will later be harvested for grain.    http://news.ca.uky.edu/article/uk-researchers-study-effects-grazing-wheat-winter 

USDA Announces Important Updates on the Milk Income Loss Contract (MILC) Program    USDA Farm Service Agency (FSA) Administrator Juan Garcia today announced that beginning Feb. 5, USDA will issue payments to dairy farmers enrolled in the Milk Income Loss Contract (MILC) program for the September 2012 marketings. The 2008 Farm Bill extension provides for a continuation of the MILC program through Sept. 30, 2013.

  As announced by FSA on Jan. 22, all dairy producers’ MILC contracts are automatically extended to Sept. 30, 2013. Eligible producers therefore do not need to re-enroll in MILC. MILC operations with approved contracts will continue to receive monthly payments, if available.

  The payment rate for September 2012 is approximately $0.59 per hundredweight. The payment rate for October 2012 marketings is approximately $0.02 per hundredweight. The payment rate for November 2012 marketings is zero.

  http://www.fsa.usda.gov/FSA/printapp?fileName=nr_20130130_rel_0032.html&newsType=newsrel