Market Closes - November 12, 2012
Posted on Nov 12, 2012Corn futures were resistant to the sell-off early today, but gave in as soybean losses magnified. Spec Funds hold large long positions in corn futures so there’s plenty of risk of long liquidation here.
Generally speaking, the spec funds will drive prices higher and lower than fundamentals warrant. Producers and end-users attempt to take advantage of this added price range and volatility.
Traders will watch South American weather closely for impacts to planting of corn and soybeans.
Wheat futures also were pressured by Friday’s bearish USDA reports that increased ending stocks estimates. December Wheat has not broken key support yet. The weekly continuation CBOT Wheat chart has critical support at $8.38 – the bottom of a descending triangle formation. KC December Wheat needs to stay above $8.49 to avoid a breakdown.
U.S. crop progress ratings will be released on Tuesday.
Live Cattle futures closed mostly lower as cash trade last week was down $1-2/cwt to $124-126. That puts December Live Cattle in line with the cash market. Deferred feeder futures benefitted from the weaker CBOT.
Lacking any bullish cash market news, Lean Hog futures closed lower. This isn’t unexpected given last week’s rally to new highs in the December contract. If CBOT futures continue lower, it will pressure deferred hog futures.
Financial markets will be listening for progress on the U.S. “fiscal cliff”. Europe’s problems have not gone away either and can impact U.S. markets at any time.
Corn Dec -21 718; Mar -20 722; Dec’13 -17.5 612
Bean Jan -46 1405; Mar -48.5 1388; Nov’13 -34 1286 Meal Dec -18 431; May -18 407 OIL -38 4739
Wheat Dec -29 858; Jly -28 860 KC -32 890; MGE -26 924
LC Dec -40 12535; Feb unch 12935; Jun -15 12925
FC Nov -20 14400; Jan +35 14595; Apr +50 15030
LH Dec -42 8032; Feb -5 8627; Jun -32 9970
Milk Nov +2 2080; Dec -29 1920
Oats -4 359
Rice -31 1491
US$ steady
Dow unch 12815
SP unch 1380
NAS -1 2904
Tran +40 5058
VIX -1.93 16.68 (10.4%)
WTI -50 8557
Brent -69 10871
Gas -3 267
NG +7 357
HO -1 300
Eth -5.4 232.7
Gold -3 1728
Slvr -21 3239
No trading in U.S. Treasuries today.
Tagged Post Topics Include: Economics, Market updates
Comments