CBOT futures closed higher and mostly in the upper half of the trading ranges.  Support came from the weaker US dollar, rising equity and energy prices and optimism Congress is making progress against the “Fiscal Cliff”. The spec funds were modest buyers.

  It doesn’t appear that anything has changed to start a significant price rally.  Traders will keep an eye on South American weather and China’s purchase and/or cancellation activity.  Also note that December Options for corn and wheat expire on Friday in a shortened trading day.

  Wheat futures at the three exchanges could not rally with the corn and soybeans and soybean oil even as traders expected winter wheat conditions to deteriorate from a week ago.  USDA reported a 2 point drop in ratings – at only 34 pct good or excellent. The Plains are likely to remain warmer and drier than normal through month’s end based on the NWS outlook maps.

  Cattle futures managed small gains today on support stemming from Friday’s higher cash cattle trade and the friendly On-Feed Report.  Boxed beef values are mostly higher as the Choice-Select Spread continues to widen – now at $21.20/cwt. Choice UP 1.15 at 194.17; Select DN 0.11 at 172.97.

  The rally in hog futures conflicts with the weaker cash hog market and pork values.  Pork Cutout value fell 60 cents to $81.63/cwt.

Corn Dec +12 739; Mar +11.5 742.5; Dec +10 619

Bean Jan +11.5 1395; Mar +14 1382; Nov +14 1277   Meal Dec unch 425; Oct +2 361   Oil +84 4789

Wheat Dec +4 842; Jly +5.5 851   KC unch 876; MGE +.5 910

LC Dec +45 12660; Feb +12 13015; Jun +20 13017 FC Jan +40 14600; Apr +12 14992; Aug unch 15490

LH Dec +112 8145; Feb +97 8742; Jun +65 10062

Milk Dec +25 1929; Jan +28 1884

Oats +11 375

Rice unch 1484 

US$ -.4%

Dow +208 12796

SP +27 1387

NAS +63 2916

Tran +92 4984

VIX -1.17 15.24

WTI +226 8918

Brent +274 11169

Gas +4.5 275.5

NG -6 373

HO +10 308

Eth +3 238.4

Gold +17 1732

Slvr +73 3310

2-yr +.004 0.246% 5-yr +.022 0.633% 10yr +.029 1.613% 30yr +.027 2.761% 

Milk Production      November 19, 2012 October Milk Production down slightly

   Milk production in the 23 major States during October totaled 15.2 billion pounds, down slightly from October 2011. September revised production at 14.7 billion pounds, was down 0.6 percent from September 2011. The September revision represented a decrease of 19 million pounds or 0.1 percent from last month's preliminary production estimate.

   Production per cow in the 23 major States averaged 1,791 pounds for October, 1 pound above October 2011.    

   The number of milk cows on farms in the 23 major States was 8.47 million head, 10,000 head less than October 2011, and 8,000 head less than September 2012.