It was an amazing day in CBOT futures as a sharp rally overnight fell apart when more traders showed up at the 8:30 am CT opening with sell orders in hand. Farmers reportedly jumped on the bandwagon and sold more cash grain at these prices which were sharply above those seen over the weekend.

The rally was fueled by soybean meal futures as nearby cash supplies of meal are apparently short. Market reports have mentioned some export contracts getting switched to South American ports and also that wheat may be substituting in rations. With record crops, it’s not a good idea to destroy demand by prices rising too much early in the season. But a good part of this rally may be blamed on technical considerations as the short speculators liquidated positions. Technically, December soybean meal topped out near the 62% retracement mark on the weekly continuation chart

Cattle futures ended lower but Live Cattle are still within striking distance of the contract highs. Boxed beef was higher today and the trade expects fed cattle will sell for more than $170 this week, maybe up $2-3 from last week’s $169/cwt. Choice carcasses up 2.36 at 251.56; Select up 3.11 at 239.10/cwt. However, traders are leery of cheaper pork and chicken hitting the beef market. Read today’s Daily Livestock Report from the CME Group by CLICKING HERE.

Lean Hog futures closed moderately higher even as the pork market dropped sharply. FOB Plant Pork ended down 2.39 to 97.72/cwt. The December LH contract’s sharp discount to the cash market leaves room for futures to trade up on some days. Today’s rally only erased Monday’s loss.

Corn Dec +1 364 (hi 372); May +1 387; Dec15 unch 408 Bean Nov +2 1008 (hi 1034); May +2 1028; Nov -8 990 Meal Dec -2 375; May -1 337 Oil +56 3279 Wheat Dec +8 531; Jly +9 560 (hi 561) KC +7 602; MGE +5 577 Oats -4 356 Rice -18 1205

LC Oct -35 16920; Dec -5 16777; Apr -50 16577 FC Oct -5 23827; Nov -115 23365; Mar -22 22705 LH Dec +115 9020; Feb +107 8930; Jun +95 9355 Milk Nov +5 2127; Dec +6 1911

US$ -.2%

Dow +188 17006 SP +23 1985 NAS +78 4564 Tran +133 8759 VIX -1.65 14.39

WTI +58 8158 Brent +38 8621 Gas +3 220 NG +10 366 HO +3 250 Eth +3 179

Gold -1 1228 Slvr +2 1718

2-yr +.016 0.398% 5-yr +.033 1.517% 10yr +.039 2.296% 30yr +.032 3.066%

KENTUCKY BEEF CONFERENCE    October 30    Fayette County Extension Office    See Program HERE

KENTUCKY CASH GRAIN PRICES – Click Here 

KENTUCKY LIVESTOCK AUCTIONS --  Click Here 

Subscribe to “Between the Rows” e-newsletter from the KFB Commodity Division by Clicking Here.