Market Closes - November 12, 2014

Posted on Nov 12, 2014
CBOT futures were volatile today with a variety of buy/sell “currents”. Strong soybean meal demand drove prices much higher in the early morning hours. Corn and wheat followed the soy complex up until the 930 am opening of pit trade. The soy complex fell sharply from 930-1000 am which dragged corn and wheat down. Futures bounced after 10 am but corn and soybean futures couldn’t sustain the rally and closed only about 4 cents above the day’s lows. On the other hand wheat futures finished the day very strong and near the day’s highs. Some factors driving prices were increased soybean meal margins at the CBOT, rumors of Argentinian meal coming to the U.S. Southeast, increased farmer selling, and profit-taking by the spec funds when the charts posted bearish reversals (however, uptrends are still intact for soybeans and meal). USDA reports indicate rising basis levels at Central Illinois processors and for GULF Export bids. Wheat futures soared on concerns that the extreme cold for this time of year will damage the crop. Also, Russia may be agitating the Ukraine situation again which could limit exportable supplies.

Outside markets were bearish today with crude oil price dropping and the US dollar strengthening.

Cattle futures closed moderately higher with better gains in the deferred contracts. Prices were supported by a stronger beef market throughout the day. Choice beef is UP 1.47 to 251.44 and Select is UP .32 to 238.75/cwt. The December LC contract is within striking distance of the contract high at 169.97. Need to see firming prices for fed cattle at the feedlot.

Lean Hog futures closed strongly with new highs for this move charted. Prices may start tomorrow softer due to pork values not holding their midday strength. FOB Plant Pork closed down .32 to 95.28/cwt.

Corn Dec +4 378 (hi 385); May +3 399; Dec15 +3 422 Bean Jan -16 1048 (hi 1086); May -13 1058; Nov -11 1026 Meal Dec -6 395 (hi 417); May -1 357 Oil -65 3222 (hi 3340) Wheat Dec +17 543 (hi 546); Jly +17 561 (hi 562) KC +21 599; MGE +14 581 Oats +2 338 Rice +16 1201

LC Dec +50 16775; Feb +117 16957; Jun +115 15875 FC Nov +50 23935; Jan +72 23337; Mar +125 23180 LH Dec +77 9067; Feb +135 9080; Apr +70 9170 Milk Nov +1 2165; Dec +19 1885

US$ +.3%

Dow -3 17612 SP -1 2038 NAS +15 4675 Tran +31 9092 VIX +.10 13.02

WTI -95 7699 Brent -182 7985 Gas -1 210 NG -10 415 HO -3 244 Eth +5 195 Gold -1 1162 Slvr -2 1566

2-yr +.004 0.543% 5-yr +.005 1.646% 10yr +.007 2.366% 30yr +.008 3.096%

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Tagged Post Topics Include: Economics, Market updates