Old-crop soybean futures soared on tight U.S. supplies and continued strong export sales (primarily to China). While South America has a large crop being harvested, it isn’t readily competing yet due in part to shipping delays at Brazilian ports.

Wheat futures sank on forecasts for more precipitation to fall across the Plains. There appears to be a change in the jet stream pattern that may keep moisture coming. There’s not much to hold wheat futures up since the large spec funds are short wheat and the trend is their friend plus U.S. wheat exports are disappointing.

Corn futures closed lower and the December 2013 contract made a new low for the move. Given wheat’s price discount to corn, some corn may be displaced in feed usage. Traders expect the 2012/13 ending stocks estimate will rise in Friday’s USDA WASDE report.

Cattle futures closed higher as boxed beef values were up sharply today -- Choice UP 2.86 at 190.96; Select UP 2.27 at 188.08. Last week’s beef production was 9 percent less than the prior week. Cattle prices at Blue Grass in Lexington were several dollars higher compared to last week (see report below).

Lean Hog futures closed lower as cash prices were down early in the day. April futures are at a premium to the CME LH Index, so upside is limited.

** NOTE the switch to MAY futures quotes.

Corn May -5 703; Jly -5 682; Dec -6.5 550 Bean May +18.5 1462; Jly +16 1443; Nov +8 1269   Meal May +4 434; Oct +1 357    Oil +59 5026 Wheat May -18 702; Jly -18 704.5; Dec -17 725   KC -18 738; MGE -13 792

LC Apr +40 13035; Jun +45 12555; Oct unch 13022 FC Mar +97 14252; Apr +57 14472; Aug +20 15455 LH Apr -82 8030; Jun -80 9057; Oct -57 8240 Milk Mar +3 1682; Apr +5 1718

Oats +4 384 Rice -19 1558

US$ -.1% Dow +38 14128 (within 50 points of all-time high) SP +7 1525 (40 points from all-time high) NAS +12 3182 Tran +60 6045   VIX -1.35 14.01

WTI -44 9024 Brent -26 11014 Gas -3.5 309 NG +8 353 HO -1 292 Eth unch 241

Gold +2 1574 Slvr +9 2858

2-yr unch 0.23% 5-yr +.02 0.76% 10yr +.03 1.88% 30yr +.04 3.09%

Blue Grass Stockyards Cattle Auction Report for 03/04/2013 Receipts:  914   Last Monday:  939   Year Ago:  869    Compared to last week, steer calves sold 2.00 to 3.00 higher except 600-700 lbs 10.00 higher with active farmer participation driving the market higher with very good demand. Yearling steers sold 2.00 to 3.00 higher with good demand.  Heifer calves under 600 lbs sold 2.00 to 5.00 higher with good demand over 600 lbs sold about steady with moderate demand.  Slaughter cows sold 2.00 to 3.00 higher with very good demand.  Slaughter bulls sold 3.00 to 5.00 higher with very good demand.    Total supply included 09% slaughter cows, 01% slaughter bulls, less than 01% replacements and 89% feeders.  Feeder supply 55% steers, 16% bulls, 29% heifers with 70% of feeders weighing over 600 lbs. 

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