Market Closes - January 25, 2013

Posted on Jan 25, 2013
CBOT futures keyed off this morning’s Export Sales report which was positive for soybeans and wheat, but negative for corn. Traders may have been bull-spreading wheat/corn. Now the focus will be on updated rain forecasts for Argentina and the Plains states on Sunday evening.

Live Cattle futures closed higher but off the day’s highs. The strength resulted from higher cash cattle prices on Thursday. This afternoon’s Cattle on Feed report is considered friendly due to fewer placements in December and more marketings than expected. (see report results below). Boxed beef values continued to weaken today so packer margins are becoming even more negative.

Lean Hog futures closed slightly lower pressured by weakness in cash hog prices. Futures traded inside Thursday’s wide trading ranges.

Treasury interest rates shot higher today as money moved out of bonds into the stock market, boosted by positive corporate earnings reports. CNBC.com reports that the S&P500 index posted its longest winning streak since 2004. Since December 31, 2012, the SP500 has gained 5.4%, the Dow is up 6.0%, and the NASDAQ is up 4.31% (despite the crash in APPLE stock).

Corn Mar -3.5 721; Jly -2.5 713; Dec -1 584 (583-589)

Bean Mar +6 1441; Jly unch 1418; Nov -3 1303 (1295-1310)   Meal Mar +2 416; Oct -.5 364   Oil -1 5210

Wheat Mar +8 776.5; Jly +6 788.5 (777-793)   KC +8 829; MGE +9 865

LC Feb +42 12630; Apr +40 13075; Oct -55 13152 FC Jan +10 14470; Apr -2 15115; Aug -30 15957 LH Feb -22 8682; Apr -75 8892; Jly -32 9707 Milk Jan unch 1812; Feb -10 1702

Oats +2 363 Rice +19 1548

US$ -.3%

Dow +70 13896 SP +8 1503 NAS +19 3150 Tran +15 5870   VIX +.20 12.89

WTI +8 9603 Brent +13 11341 Gas +1 287 NG unch 345 HO -2.5 306 Eth -.6 238

Gold -12 1658 Slvr -55 3117

Compare today’s Treasury yields to those on December 10 (in BOLD). 2-yr +.041 0.284% (0.246%) 5-yr +.083 0.852% (0.621%) 10yr +.093 1.950% (1.622%) 30yr +.082 3.134% (2.801%)

United States Cattle on Feed Down 6 Percent    Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.2 million head on January 1, 2013. The inventory was 6 percent below January 1, 2012. The inventory included 7.05 million steers and steer calves, down 3 percent from the previous year. This group accounted for 63 percent of the total inventory. Heifers and heifer calves accounted for 4.07 million head, down 9 percent from 2012.

   Placements in feedlots during December totaled 1.66 million, 1 percent below 2011. Net placements were 1.59 million head. During December, placements of cattle and calves weighing less than 600 pounds were 495,000, 600-699 pounds were 415,000, 700-799 pounds were 379,000, and 800 pounds and greater were 375,000.

  Marketings of fed cattle during December totaled 1.75 million, 2 percent below 2011.

  Other disappearance totaled 74,000 during December, 19 percent below 2011.

Kentucky Weekly Livestock Summary for January 18 thru January 24, 2013 Receipts  This Week   Last Week  Last Year 19,302      21,847     26,147

Supply:  Slaughter Cows 10 percent; Slaughter Bulls 3 percent; Feeder cattle 85 percent.  In the feeder supply, Steers made up approximately 42 percent and Heifers approximately 37 percent.  Steers and Heifers over 600 lbs totaled approximately 53 percent.  Replacement cattle 2 percent. 

   Steers and Heifers were mostly 2.00 to 4.00 lower. Demand moderate as prices move lower.  A number of factors pressuring prices this week. Boxed Beef continues to struggle seasonally in the cold months and the closing of a large packing plant in Texas was announced late last week.  This triggered lower futures prices and resulted in a lower fed cattle market last week. Lower price levels and cold temperatures more an incentive for producers to stay home.  Slaughter Cows and Bulls were mostly steady to 2.00 higher.

Tagged Post Topics Include: Economics, Market updates