Market Closes - January 9, 2017

Posted on Jan 9, 2017

CBOT futures closed higher with soy and wheat leading the market up and posting closes at the very high end of the day’s trading range. Soybean futures tested last week’s lows overnight and then rallied strongly through the day session. Better-than-expected soybean export shipments for last week was supportive. The sharp drop in energy futures weighed on the CBOT.

Old-crop soybean futures are sitting right around the key 200-day moving averages. The November Soybean contract has well-established chart support at the December-January lows just above $9.80; the 100-day moving average is at 9.78 and rising. And with a downtrending resistance line off the December highs nearby, a technical breakout is likely to occur within days – which direction will it be? PLUS, we have key USDA stocks/production/S&D reports on Thursday, as well as Wheat Seedings. Wheat futures added to the rally which began in December; this short-covering has added over 30 cents/bushel.

Cattle futures closed strongly higher with the biggest gains in the Feb and April LC contracts. Futures started the day on a weak tone but soon turned higher.  The big gains resulted from a sharp rally in the final minutes of trading. LC futures were supported by the February LC sharp discount to last week’s average cash steer price of $117.67/cwt (dressed 187.97).  Cattle rallied despite much weaker boxed beef values. Choice beef lost 1.46 to 197.35 and Select lost 1.28 to 191.94.  Ch/Sel spread of 5.41.

Lean Hog futures closed higher except for February LH dropping 22 cents. All LH contracts opened lower this morning under pressure from weaker cash hog prices and February LH’s sharp premium to the CME Cash Index. However, LH turned higher late morning on strength in the Pork Cutout and cattle futures to close near the day’s highs. FOB Plant Pork jumped .85 to 79.86 with only hams losing value. The midday quote was 80.91, up 1.90, when hams were up 1.97.  Except for the February LH contract, LH futures have rallied to challenge the highs set in December. LH contracts are within $2-4/cwt of contract highs set in June. Hog packers reportedly have very good operating margins.
 

Corn Mar +2 360; Jly +2 374; Dec +2 387 (384-89)

Bean Mar +10 1005; Jly +11 1022; Nov +11 994 (981-94)

  Meal +3 314

  Oil +51 3549

Wheat Mar +4 427; Jly +6 454 (446-54)

  KC +5 438; MGE +7 560

Oats -2 225

Rice +2 946

 

LC Feb +170 11652; Apr +177 11597; Aug +92 10115

FC Jan +95 12927; Apr +140 12510; Aug +162 12497

LH Feb -22 6375; Apr +17 6837; Jun +55 7775

Milk Jan +1 1663; Feb +20 1719

 

US$ -.2%  102.0

Dow -76 19887

SP -8 2269

NAS +11 5532  - RECORD HIGH CLOSE

Tran -81 9023

  VIX +.25 11.57

 

WTI -220 5179

Brent -232 5478

Gas -6 157

NG -17 312

HO -7 164

Eth -3 152

Gold +8 1182

Slvr +9 1661

2-yr -.028 1.190%

5-yr -.043 1.879%

10yr -.046 2.372%

  Yield erased Friday’s jump. 10-yr yield peaked at 2.60% on December 19. Yield was 1.83% before November 8 election.

30yr -.039 2.964%
 

November Pork Exports Set New Record; Beef Exports also Strong

January 9, 2016 – US Meat Export Federation

U.S. red meat exports continued to build momentum in November, highlighted by a new monthly volume record for pork exports. Both pork and beef exports exceeded year-ago levels by more than 20 percent in both volume and value, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF).

November pork exports totaled 225,757 metric tons (mt), up 24 percent year-over-year and breaking the previous record (218,132 mt) set in October 2012. Export value was $586.8 million, up 30 percent from a year ago and the highest since May 2014. For January through November, pork export volume was up 7 percent from a year ago to 2.09 million mt, while export value increased 5 percent to $5.38 billion.

November exports accounted for nearly 15 percent of total beef production and 11.7 percent for muscle cuts only – the highest levels since 2014. January-November exports accounted for 13.5 percent and 10.3 percent, respectively – up from 13 percent and 10 percent during the same period in 2015. Beef export value per head of fed slaughter reached a 2016 high of $294.39 in November, up 5 percent from a year ago. For January through November, per-head export value averaged $258.48, down 7 percent.

Read entire USMEF release by Clicking Here.
 

Kentucky Farm Bureau Minute video  - Click Here

KENTUCKY CASH GRAIN PRICES Click Here

KENTUCKY LIVESTOCK AUCTIONS --  Click Here