The Funds were sellers of CBOT futures today as harvest rushes forward, corn and wheat exports disappointed, corn gets imported into the Southeast U.S., weather favors South American crops and the outside markets were weak. The Funds still have huge long positions in corn and soybeans, but are building a short position in CBOT Wheat.

  Key chart support levels are visible on the nearby corn, soybean and wheat charts. November Soybeans have chart gap support down to $14.78; if broken, price could fall another 50+ cents. December Wheat needs to remain above $8.34.

  Live Cattle futures edged higher on very strong boxed beef quotes at midday. The closing report has Choice up 2.29 at 193.96; Select up 1.85 at 178.89.  Feeder futures rallied sharply on lower feed costs.

  Lean Hog futures closed mixed. The nearby December contract gained on its discount to the cash market and the rise in pork values – the Pork cutout was up 0.83 to 87.86/cwt.  Deferred hog futures oscillate with the trend in corn price. Falling corn price makes breeding herd liquidation less likely.

 Corn Dec -15.5 737; Mar -15.5; Dec’13 -8 626

Bean Nov -30 1492.5; Mar -26 1466; Nov’13 -14 1324.5   Meal Dec -9 456; May -6 417   Oil -66 5001

Wheat Dec -8.5 848; Jly -8 833   KC -9 881; MGE -3 921

LC Oct +25 12415; Feb +52 12987; Jun unch 13005

FC Oct +125 14435; Jan +110 14725; Apr +80 15150

LH Dec +17 7855; Feb -7 8457; Jun -82 10002

Milk Oct +2 2116; Nov -10 2097

Oats -4 388

Rice -1.5 1501

US$ steady

Dow +95 13424

SP +12 1440

NAS +20 3064

Tran +21 5065

  VIX -.87 15.27

WTI -1 9185

Brent +125 11587

Gas -4 285

NG -12 349

HO -1.5 321

Eth -4.5 237

Gold -21 1739

Slvr -93 3273

2-yr unch 0.262% 5-yr +.003 0.663% 10yr +.012 1.668% 30yr +.017 2.848%

Blue Grass Stockyards Cattle Auction Report for 10/15/2012 Receipts:  1,275   Last Monday:  1,644   Year Ago:  2,060 

   Compared to last week, steer calves sold 2.00 to 5.00 lower with light demand; most decline on fleshy unweaned 400-600 lbs calves.  Heifer calves sold steady to 2.00 lower with moderate demand.  Bull calves sold 3.00 to 10.00 lower with light demand.  Yearling steers and heifers sold steady in a light test with good demand.  Slaughter cows and slaughter bulls sold steady with good demand.

   Total supply included 06% slaughter cows, 01% slaughter bulls, less than 1% replacements and 92% feeders.  Feeder supply 29% steers, 25% bulls, 46% heifers with 39% of feeders weighing over 600 lbs.