CBOT futures highs came early in the day and then prices drifted lower.  Prices generally closed in the bottom part of the day’s range – excluding January and March 2013 Soybeans.  Corn and Soybean futures both saw strength in the old-crop contracts and weakness in the new-crop ones.  CBOT Wheat went the other way.   Corn, wheat and soybean futures remain above key chart support points although new-crop soybean futures are more vulnerable to the downside, maybe to $12.60.   Corn is looking at weak exports, while export demand remains very strong for soybeans.  Today’s NOPA Crush Report was considered friendly to old-crop soybeans as it showed more soybeans crushed than expected AND the lower-than-expected soybean meal per bushel could require more soybeans processed to get the needed soybean meal.  Early evidence also points to higher-than-expected soybean oil yield. A large soybean oil export sale announced today helped soybean oil futures beat beans and meal.   Live Cattle futures closed lower on soft boxed beef values, lack of cash cattle trade and weakness in U.S. equity markets as political posturing about the “fiscal cliff” goes on with no compromise on the horizon.   Feeder Cattle futures were hit hard despite small moves in Live Cattle and the CBOT.  Traders may be positioning ahead of Friday afternoon’s Cattle on Feed Report. October Placements into feedlots should be down sharply from October 2011.   Lean Hog futures closed lower as cash hog prices dropped and the Pork Cutout fell $2.55 to $81.57/cwt; this is $5 below last Friday’s cutout value.  Hog futures are trading even lower in late afternoon electronic trading since the US stock market dropped one percent after the Hog Pit closed.   Crude Oil futures rallied on news that Israel had killed a Hamas military leader and tensions are up in the area.

Corn Dec +2 726; Mar +3 729; Dec'13 -3 608

Bean Jan +11 1419; Mar +13 1399; Nov'13 -7 1275   Meal Dec +3 436; May unch 409   Oil +65 4767

Wheat Dec -2 849; Jly +3 859   KC +2 890;  MGE +1 923

LC Dec -30 12550; Feb -67 12912; Jun -62 12915 FC Nov -25 14327; Jan -155 14460; Apr -142 14910

LH Dec -37 8012; Feb -62 8622; Jun -2 10000

Milk Dec +29 1967; Jan +17 1892

Oats +4 367

Rice -13 1465

US$ steady

Dow -185 12570

SP -19 1355

NAS -37 2847

Tran -129 4926

VIX +1.25 17.90

WTI +106 8644

Brent +171 10997

Gas +3 269

NG +1 375

HO +4 300

Eth +1 234

Gold +2 1727

Slvr +22 3271

5-yr unch  0.623% 10yr -.002 1.593% 30yr +.005 2.728%