Market Closes - November 27, 2012Posted on Nov 27, 2012
CBOT futures closed sharply higher and at the day’s highs with a strong rally in the last hour of trading. Spec funds were strong buyers.
Price support came from increasing concerns about weather impacting production potential of the US winter wheat crop and the South American corn and soybean crops that are not completely planted yet. Traders also note that the corn planting window is closing which could increase soybean acres. There’s also optimism that US exports could strengthen due to shipping delays from Brazil.
The U.S. winter wheat condition is the worst on record going into winter. The Plains are not expected to get appreciable moisture over the next two weeks. The Ohio River Valley has best chances for rain.
Cattle futures closed near steady with little market news to drive markets. The closing report showed Choice beef down 77 cents and Select beef up 77 cents/cwt.
Lean Hog futures closed slightly lower as cash markets changed little and December futures are several dollars premium to the cash hog price. These two prices need to converge as the calendar nears the December 14th expiration.
US equities were performing relatively well today, thanks to good economic reports and a deal to reduce Greece’s debt problems, until Senator Reid reported that “little progress” has been made on the US “fiscal cliff” issue. Stock Indexes ended at the day’s lows.
Also supportive for markets is optimism that China’s economic slowdown has ended. The OECD forecasts China's GDP will expand to 8.5% in 2013 and 8.9% in 2014 after falling to 7.5% this year.
Corn Dec +13 760; Mar +13 764; Dec’13 +8.5 637.5
Bean Jan +24.5 1449; Mar +25 1437.5; Nov +15 1311 Meal Dec +8 439; Oct +2 371 Oil +85 5012
Wheat Dec +24 873; Jly +23 882.5 LC Dec -2 12837; Feb -7 13232; Jun unch 13192
FC Jan -42 14692; Apr -22 15132; Aug +7 15670 LH Dec -10 8237; Feb -25 8672; Jun -65 10020
Milk Dec -13 1895; Jan -1 1859
Oats +4 373
Rice +16 1508
Dow -89 12878 SP -7 1399 NAS -9 2968 Tran -7 5077
VIX +.40 15.90
WTI -40 8734 Brent -92 11000 Gas +1 273 NG +2.5 375.5 HO -2 302.5 Eth +3 244
Gold -8 1742 Slvr -11 3403
2-yr -.008 0.262% 5-yr -.023 0.647% 10yr -.027 1.639% 30yr -.016 2.786%
Congressional Lame Duck Session View the November 26 KFB National Issues ACTION ALERT by clicking HERE.
Manage grain bins to maintain quality, profit By Katie Pratt While the 2012 growing season was a struggle for many Kentucky grain crops producers, most grain was harvested. Producers may have stored some of this grain or they may have grain from the 2011 harvest still in the bin. With high grain prices, it’s important to monitor stored grain to retain its maximum value, said Sam McNeill, agricultural engineer with the University of Kentucky College of Agriculture. The following tips can help producers preserve grain quality and retain profits.
Read the entire UK story at: http://news.ca.uky.edu/article/manage-grain-bins-maintain-quality-profit
Blue Grass Stockyards Cattle Report for 11/27/2012 Close Receipts: 1,277 Last Tuesday: 1,006 Year Ago: 1,499 Compared to Monday, steer and heifer calves sold about steady with good demand. Yearling steers and heifers sold about steady with good demand. Slaughter cows and slaughter bulls sold steady to 1.00 lower with light to moderate demand in a light test.
Total supply included 05% slaughter cows, 01% slaughter bulls, 0% replacements and 94% feeders. Feeder supply 54% steers, 09% bulls, 37% heifers with 67% of feeders weighing over 600 lbs.