Market Closes - January 8, 2015

Posted on Jan 8, 2015
CBOT futures closed lower (and near the day’s lows) with the exception of Soybean Oil. USDA weekly export sales was positive for soybeans but not for corn, wheat and soybean meal. A sharp drop in soybean meal futures weighed on soybean prices. Corn and wheat futures remain under pressure which started with yesterday’s trading. The strengthening US Dollar works against US exports, especially for wheat where we have several competitors. The bias may be for lower prices going into Monday’s USDA reports as the funds trim their long positions.

Cattle futures closed sharply lower with prices touching limit-down ($3.00 for LC and $4.50 for FC) in electronic trading after the closing bell of pit-trade. Given strong cash and beef prices this week, this selloff is based on technical selling and liquidation of long positions. Today’s price activity gives the charts a negative look. Choice beef carcasses up 1.82 at 254.57; Select carcasses up 3.22 at 245.34. LC futures are now at an even larger discount to cash cattle – which one’s right?

Lean Hog futures closed sharply lower on spillover pressure from the cattle pit and this morning’s disappointing monthly pork (and beef) export number. FOB Plant Pork closed up 1.38 to 83.91 on stronger values for ribs and bellies. This probably helped the nearby February LH contract cut losses during the afternoon e-trade ($78.95).

Corn Mar -2 394; Jly -2 409; Dec -3 417 Bean Mar -8 1048; Jly -7 1059; Nov -8 1017 Meal -7 347; Oct -5 331 Oil +60 3376

Wheat Mar -12 567; Jly -11 577 KC -12 608; MGE -7 608 Oats unch 302 Rice -12 1152

LC Feb -230 16360; Apr -230 16242; Oct -180 15252 FC Jan -2 22562; Mar -327 21705; Aug -280 21922 LH Feb -115 7817; Apr -192 7995; Jun -190 8900 Milk Jan +19 1599; Feb unch 1494

US$ +.3%

Dow +323 17908 SP +36 2062 NAS +86 4736 Tran +189 8962 VIX -2.30 17.01 -12%

WTI +27 4892 Brent -4 5111 Gas +1 134 NG +9 297 HO +1 171 Eth -1 146 Gold -2 1209 Slvr -17 1637

2-yr -.008 0.609% 5-yr +.019 1.492% 10yr +.068 2.020% 30yr +.084 2.598%

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Tagged Post Topics Include: Economics, Market updates