CBOT futures opened lower and kept dropping until midday and then proceeded to rally through the afternoon to close mixed.  Cash basis strength brought in buying for corn and soybean futures. Soybean export inspections for last week were very strong. Traders also suspect that China may have bought soybeans on this sharp drop in price.

  The US Winter Wheat condition ratings dropped another 3 points to 36 pct good/excellent. Acreage rated poor/very poor jumped from 19 pct to 22 pct. The Plains need rain.  

  U.S. soybean harvest is 96 pct complete, compared to 95 pct a year ago and 93 pct for the 2007-11 average.  KY has 91 pct of soybeans harvested.

  Live Cattle futures rallied in tandem with the CBOT futures and closed near the day’s highs. Live Cattle charted “outside up” days which may encourage more buying.  The cash cattle market is not expected to support LC futures this week. While LC futures were trading, boxed beef values showed strength; however, Choice Beef only gained 9 cents in the closing report.

  Lean Hog futures closed higher as the bullish charts outweigh the steady cash hog markets and weakening Pork values.  The Pork Cutout dropped $1.61 to $84.12/cwt today.  February 2013 and beyond LH futures contracts moved to new contract highs today as long-standing resistance levels were taken out.

  The beef and pork markets need to move past Thanksgiving to get a better measure of consumer demand

Corn Dec +5.5 723.5; Mar +4 726; Dec’13 -1 611

Bean Jan +3 1408 (low 1391); Mar -2 1386; Nov’13 -4 1282   Meal Dec +2 433; May +2  409   Oil -37  4702

Wheat Dec -7 851; Jly -4 856   KC -3 888;  MGE -2 922

LC Dec +45 12580; Feb +45 12980; Jun +52 12977

FC Nov -47 14352; Jan +20 14615; Apr +22 15052

LH Dec +17 8050; Feb +57 8685; Jun +32 10002

Milk Dec +16 1936; Jan +1 1875

Oats +4 364

Rice -12 1478  

US$ steady

Dow -59 12756

SP -5 1375

NAS -20 2884

Tran -4 5055

VIX -.03 16.65

WTI -24 8533

Brent -89 10818

Gas -2.5 265

NG +18 375

HO -4 296

Eth +1 234

Gold -6 1725

Slvr -4 3248

2-yr -.008 0.254% 5-yr -.019 0.623% 10yr -.019 1.594% 30yr -.024 2.723%