Market Closes - January 6, 2015

Posted on Jan 6, 2015
Monday’s sharp gains in corn and soy futures reversed the combined losses made last Wednesday and Friday (around New Year’s Day). On fears of winterkill damage, wheat rallied strongly this morning to levels traded last Tuesday to match yesterday’s corn/bean rally. However, wheat futures collapsed after Noon CST but closed off the day’s lows AND higher on the day. Soybean futures closed strongly higher and near the day’s highs; support came from some concern for a drier outlook in parts of South America (not all in agreement) and strong export demand for U.S. soybeans. It appears that traders are most optimistic about potential gains in soybean futures compared to corn/wheat. Focus will be on South American weather as soybeans enter most critical period. The first soybeans have been harvested in Brazil. Key USDA reports come out Monday.

Outside markets were bearish today with a stronger US dollar and sharply lower crude oil prices, along with a weak stock market.

Cattle futures closed lower with the nearby February Live Cattle contract erasing sharp morning losses to close little changed. Rising boxed beef values were supportive. Choice carcasses up 0.97 at 250.33; Select down 0.38 at 240.05/cwt. After trading very narrow price ranges on Monday, Feeder Cattle futures were extremely volatile today with 5+ cent/lb price ranges. Today’s price action not only negated yesterday’s UP price gaps, but charted bearish price reversals.

Lean Hog futures added to Monday’s losses and are now near or below the previous lows set on December 17. LH futures were pressured by weaker cash hog prices and pork cutouts. FOB Plant Pork ended down .89 to 82.41 on a sharp drop in picnic value and weaker loins. The February LH contract hasn’t been this low since the fall of 2013. The spot futures contract hasn’t been this low since March 2013.

Corn Mar -1 405 (402-09); Jly -1 420; Dec -1 428 Bean Mar +10 1056 (1039-57); Jly +8 1066; Nov +4 1029 Meal Mar +1 355; Jly +2 347 Oil unch 3287 Wheat Mar +3 592; Jly +3 599 (593-609) KC +6 631; MGE +4 625 Oats -1 304 Rice +3 1136

LC Feb -20 16602; Apr -45 16500; Oct -110 15575 FC Jan -97 22470; Mar -250 22087; Aug -217 22385 LH Feb -135 7857; Apr -145 8135; Jun -147 9050 Milk Jan -6 1566; Feb -11 1488

US$ +.2%

Dow -130 17372 SP -18 2003 NAS -60 4593 Tran -146 8711 VIX +1.20 21.12 +6.2%

WTI -203 4801 Brent -212 5099 Gas -3 135 NG +6 294 HO -4 171 Eth -8 149 Gold +15 1219 Slvr +34 1655

2-yr -.036 0.629% 5-yr -.088 1.480% 10yr -.097 1.940% 30yr -.104 2.501%

Blue Grass Stockyards Cattle Report for 01/06/2015 Receipts: 1111 Last Week: Holiday Year Ago: 31 Compared to yesterday steer calves under 600 lbs sold steady to weak with moderate demand in a light test. Market softer for fleshy lightweight offerings that were of lesser quality than yesterday. Lightweight heifer calves sold steady to weak with moderate demand except 500-600 lbs firm with good demand. Quality was plain through good. Slaughter cows and slaughter bulls sold 2.00 to 3.00 lower with moderate demand. CME cattle futures softer by mid-day. Total supply included 07% slaughter cows, 01% slaughter bulls, less than 01% replacements and 92% feeders. Feeder supply 58% steers, 11% bulls, 31% heifers with 59% of feeders weighing over 600 lbs.

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Tagged Post Topics Include: Economics, Market updates