Market Closes - January 8, 2014

Posted on Jan 8, 2014
CBOT futures closed sharply lower for the most part. Corn and Chicago Wheat futures moved to new lows, as did November Soybeans. Corn and wheat saw accelerated losses into the closing bell. As prices moved lower, more sell-stops were hit.  Fundamentally, futures were pressured by expectations that rainfall in Brazil and Argentina will be beneficial to corn and soybean crops.

Cattle futures were higher except for the nearby February LC contract. Boxed beef values are surging higher helping to erase the negative packer margins in place after cash fed cattle prices rallied the past couple weeks. In boxed beef markets, Choice up 2.82 at 210.13 and Select up 3.51 at 207.07/cwt. Note the narrow $3.06/cwt spread between Choice and Select.  Feeder Cattle futures were strongly higher with the January FC contract closing above the December highs to challenge October 2013 highs about a dollar above tonight’s close.

Lean Hog futures managed small gains today even as the pork cutout lost over half of Tuesday’s gain.  Until the cash hog and pork markets can strengthen, it’s hard to see the February LH contract gain since it’s already several dollars above the cash market.

Bearish price action in energy and precious metal markets also weighed on agricultural markets. The US dollar has also been creeping higher (on rising interest rates) which is negative for US exports.  The Dollar Index at 81.03 is headed for key chart resistance at 81.48.

Corn Mar -9 417 (415-28); Jly -8 432; Dec -7 446 (443-55) Bean Mar -7 1269 (1266-76); Jly -10 1237; Nov -13 1104 (1103-16) Meal Mar -3 412;  Oct -4 345 Oil -25 3768 Wheat Mar -14 589; Jly -13 598 (596-615) KC -8 637;  MGE -4 627 Oats +13 376; Rice +6 1554

LC Feb unch 13652; Apr +62 13697; Oct +35 13152 FC Jan +42 16847; Apr +77 16917; Aug +57 17120 LH Feb +5 8557; Apr +37 9110; Jun +42 10105 Milk Jan +14 2042; Feb +23 2038

US$ +.2%

Dow -68 16463 SP steady 1837 NAS +12 4166 Tran +22 7310 VIX -.05 12.87

WTI -112 9255 Brent +4 10739 Gas -1 266 NG -11 419 HO -1 295 Eth -3 191

Gold -5 1225 Slvr -28 1951   Silver inventories on the NY COMEX reached 176 million ounces, the highest in 16 years. During 2013, the silver price fell 36 percent, second only to corn’s price drop, according to Bloomberg News.

2-yr +.04 0.44% 5-yr +.09 1.77% 10yr +.05 3.00% 30yr +.01 3.90%   Treasury sold $21 billion 10-year notes at 3.009 percent yield, the highest since May 2011.

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Tagged Post Topics Include: Economics, Market updates