Market Closes - January 31, 2017

Posted on Jan 31, 2017

CBOT futures closed mixed with corn and soybeans trading narrow ranges.  Wheat futures traded narrow ranges until the final minutes when wheat rallied strongly to make new daily highs. Today’s weaker US Dollar was the main supportive factor for commodities today. The US Dollar closed near the day’s lows and below last week’s lows. It did remain above the December 8th low. Further weakness could head for chart support at 99.1 and then 98 and 97.

Cattle futures closed lower on follow-through selling from Monday’s gap-down price action and sharp losses. Selling was encouraged by weaker boxed beef values and concerns that cash cattle have peaked. Traders were also cautious ahead of this afternoon’s CATTLE inventory report which ended up being slightly bearish on larger-than-expected inventories.  SEE END OF EMAIL for KY and US results.

Choice beef closed down .48 at 192.87 and Select ended unchanged at 188.93.  Technically, LC contract remain above the January lows, but Feeder Cattle closed lower than the lows posted earlier this month. February LC has chart support at $114/cwt. Tomorrow’s online Fed Cattle Exchange sale will be watched closely for cash price direction.

Lean Hog futures closed higher with the February LH contract up sharply on stronger cash hog prices and pork values. FOB Plant Pork closed up .79 to 84.27 as a 4% rise in belly value and higher picnic and butt values offset a 4% drop in loins. This is much weaker than the midday quote of 85.49.

The February LH contract soared to new highs not seen since June and is only a dollar/cwt from breaking last summer’s highs.  A $22 decline has been followed by a $21 rally; both will have taken about 4 months to occur.
 

Corn Mar +2 360; Jly +2 374; Dec +2 387 (386-89)

Bean Mar +2 1024; Jly +1 1042; Nov -3 1001 (998-1007)

   Meal unch 335

   Oil +24 3385

Wheat Mar +7 421; Jly +5 447 (441-48)

  KC +4 429; MGE -3 548

Oats unch 244

Rice -23 953

 

LC Feb -57 11560; Jun -35 10420; Aug -35 9997

FC Mar -112 12277; May -82 12132; Aug -57 12245

LH Feb +197 6907; Apr +102 6925; Jun +60 7760

Milk Feb +12 1668; Mar -2 1706

 

US$ -.8%  99.6 

Dow -107 19864

SP -2 2279

NAS +1 5615

Tran -137 9192

  VIX +.11 11.99 

 

WTI +16 5279

Brent +47 5570

Gas +2 155

NG -10 313

HO +1 163

Eth unch 151

Gold +16 1212

Slvr +42 1757

 

2-yr  Unch 1.212%

5-yr -.015 1.921%

10yr -.019 2.464%

30yr -.010 3.068%

KENTUCKY CATTLE Inventory
The Cattle report today showed little change in beef cow numbers, but a continued decline in milk cows in Kentucky. The Kentucky cattle and calf inventory for January 1, 2017 was estimated at 2.16 million. Total inventory was down 10,000 head from last year.  Cows and heifers that have calved were estimated at 1.08 million head, unchanged from 2016. Beef cow inventory was estimated at 1.023 million head, up 2,000 head from a year ago; milk cows were estimated at 57,000 head, down 2,000 head.

KY Cattle on feed were estimated at 18,000 head, up 1,000 from the previous year.  The 2016 Kentucky calf crop was estimated at 980,000 head, up 10,000 from the previous year's estimate.

Read KY NASS report HERE.


U.S. Cattle Inventory
All Cattle and Calves up 1.8%.  Beef Cows totaled 31.21 million head, an increase of 1.044 million head, or 3.5% from a year ago. Milk Cows increased 39,000 head to 9.35 million. The 2016 calf crop was estimated at 35.1 million head, up 2.9 percent from last year's calf crop.

Read report HERE
 

Kentucky Farm Bureau Minute video  - Click Here

KENTUCKY CASH GRAIN PRICES Click Here

KENTUCKY LIVESTOCK AUCTIONS --  Click Here