Market Closes - November 21, 2013

Posted on Nov 21, 2013
Corn and soy complex futures closed strongly higher and near the highs of the day.  Soybeans and soybean oil led the market higher early on very strong soybean export sales and concerns about palm oil supplies.  The weekly soybean sales was beyond expectations and the Year-to-date soybean sales for the 2013-14 marketing year are well ahead of last year.  Since the South American crop has good planting and growing conditions presently, price potential is limited due to the huge crop that would come to market in early 2014.

Corn futures rallied as attitudes become less negative about EPA’s reduced RFS mandate actually cutting 2014 ethanol production (strong ethanol operating margins). Corn exports are also strong so far this season – 2013/14 Corn Export Commitments are up 110 pct from 2012/13 and at 66 pct of the total marketing year forecast. December Corn options expire midday tomorrow; there is a very large number of PUT contracts open at $4.30, $4.20 and $4.00 which could impact trade tomorrow.

Wheat futures closed poorly considering the strength in corn and soybeans, and strong wheat export sales.  Some factors are the large funds that are short wheat futures and the 2-week forecast (CLICK HERE) that calls for above normal moisture in TX and OK, which should keep the Winter Wheat condition ratings very good.

Cattle futures closed slightly higher as cash cattle traded only a dollar/cwt lower than last week.  But boxed beef slipped lower -- Choice down 0.76 at 198.58; Select down 0.87 at 186.43/cwt.  The monthly Cattle on Feed Report comes out Friday afternoon with the average trade guess at 94.0 pct for on-feed inventory and 108.7 pct for placements.

Lean Hog futures closed steady to lower as cash hog markets remain weak.

 

Corn Dec +6 423; JLy +4 444; Dec +4 458 Bean Jan +18 1291; JLY +10 1261; Nov +6 1159 Meal Dec +4 411; Jly -1 386 Oil +122 4154 Wheat Dec +1 649; Jly +1 656 KC -1 695; MGE -1 696 Oats -1 359 Rice +12 1581

LC Dec +40 13145; Feb +40 13235; Jun +40 12737 FC Jan +62 16337; Apr +10 16430 LH Dec unch 8625; Feb -35 9057; Jun -17 9915 Milk Nov unch 1880; Dec +28 1805 US$ unch Dow +109 16010 Closed above 16000 for first time ever. SP +14 1796 NAS +48 3969 Tran +79 7173 VIX -.74 12.66   -5.5%

WTI +138 9523 Brent +209 11015 Gas +7 273 NG +3 370 HO +5 301 Eth +11 205

2-yr unch 0.28% 5-yr -.01 1.37% 10yr -.01 2.79% 30yr -.03 2.89%

Red Meat Production Down From Last Year Commercial red meat production for the United States totaled 4.51 billion pounds in October, down 2 percent from the 4.58 billion pounds produced in October 2012.

Beef production, at 2.32 billion pounds, was 1 percent below the previous year. Cattle slaughter totaled 2.90 million head, down 2 percent from October 2012. The average live weight was up 9 pounds from the previous year, at 1,327 pounds.

Veal production totaled 10.0 million pounds, 4 percent below October a year ago. Calf slaughter totaled 69,500 head, down 5 percent from October 2012. The average live weight was up 3 pounds from last year, at 245 pounds.

Pork production totaled 2.17 billion pounds, down 2 percent from the previous year. Hog slaughter totaled 10.42 million head, down 4 percent from October 2012. The average live weight was up 4 pounds from the previous year, at 278 pounds.

Lamb and mutton production, at 13.1 million pounds, was down 8 percent from October 2012. Sheep slaughter totaled 208,100 head, slightly above last year. The average live weight was 126 pounds, down 11 pounds from October a year ago.

January to October 2013 commercial red meat production was 40.9 billion pounds, down 1 percent from 2012. Accumulated beef production was down slightly from last year, veal was down 6 percent, pork was down 1 percent from last year, and lamb and mutton production was down slightly.

October 2012 contained 23 weekdays (including 1 holiday) and 4 Saturdays. October 2013 contained 23 weekdays (including 1 holiday) and 4 Saturdays. KENTUCKY CASH GRAIN BIDS Click Here

Tagged Post Topics Include: Economics, Market updates