Market Closes - January 6, 2014

Posted on Jan 7, 2014
Wheat futures started the day higher on winterkill concerns but then proceeded to weaken the balance of the day to close near the day’s lows.

Corn futures rallied strongly in the final hour of trade to close at/near the day’s highs.  Corn found support from Friday’s strong reversal higher and traders’ expectation that the Index Funds (long only positions) have to buy at least 90,000 contracts of corn futures starting Wednesday. Technically, the trend is still down to sideways.

Soybean meal was the strongest market today which offset the large loss in soybean oil futures.  Strong export shipments of soybeans last week (reported today) supported the market.  Soybean futures weakened at the close while corn rallied.

Live Cattle futures closed higher on continued strength in the boxed beef market after last week’s surge to a record-high cash cattle price.  Choice carcasses up 1.21 at 205.54; Select carcasses up 2.28 at 201.38/cwt.  The bitter cold temps will reduce beef production in the short run.

Lean Hog futures closed little changed.  Pork values were also near steady.  The cold weather is likely disrupting movement of hogs to market.  The February LH contract is already several dollars premium to the cash hog price so upside in futures seems limited.

Corn Mar +4 428 (423-28); Jly +4 442; Dec +3 455 Bean Mar +5 1277 (1269-82); Jly +3 1251; Nov -4 1126 Meal Mar +7 414; Oct unch 352 Oil -48 3812 Wheat Mar unch 606; Jly unch 614 (613-20) KC +1 644;  MGE unch 630 Oats +6 351 Rice +4 1563

LC Feb +52 13682; Apr +35 13692; Oct +17 13150 FC Jan +40 16802; Apr -5 16890; Aug +10 17110 LH Feb -5 8662; Apr -15 9142; Jun +20 10120 Milk Jan unch 2006; Feb +19 1987

US$ -.3%

Dow -45 16425

SP -5 1827

NAS -18 4114

Tran -93 7234

VIX -.21 13.55

WTI -28 9368

Brent +21 10710

Gas -3.5 266

NG unch 431

HO +2 295

Eth +7 192 

2-yr unch 0.40% 5-yr -.04 1.70% 10yr -.04 2.96% 30yr -.02 3.90%

Blue Grass Stockyards   Cattle Auction Report for 01/06/2014

Receipts:  563   Last Monday:  no sale   Year Ago:  1,449 No comparison - Lexington stockyards was closed the last two weeks for holiday, however market still active especially for good quality middle-weight calves.  Yearlings lightly tested. Quality was plain to good.  Very good demand for slaughter cows. Good demand for slaughter bulls. Very cold temperatures overnight combined with bitter cold wind chill restricted cattle movement. Total supply included 24% slaughter cows, 02% slaughter bulls, 03% replacements and 71% feeders.  Feeder supply 38% steers, 22% bulls, 40% heifers with 43% of feeders weighing over 600 lbs.   

KENTUCKY CASH GRAIN BIDS Click Here

Tagged Post Topics Include: Economics, Market updates