Charts from Daily Livestock Report, CME Group, September 6, 2012

   For a day that saw little price changes at midday, it turned into one with large price moves in several markets.  Much of the sell-off was profit-taking (long liquidation) in commodities and “risk-off” trade in the financials.

  November Soybeans have support at $17.01.  December Corn is supported at $7.71, then $7.45.  With prices approaching chart support, Wednesday’s Crop Report and WASDE updates will be critical to market direction.  The average trade estimates are: Corn = 10.4 billion bushels compared to 10.8 in August;  Soybean = 2.66 billion bushels compared to 2.69 in August.  

  Live Cattle futures closed lower despite last week’s high fed cattle price (averaged $123.31, up $2/cwt).  Feeders benefited from lower feed costs.

  Lean Hog futures for the balance of 2012 closed higher on apparent buying by traders expecting cash prices to improve soon.  

   Equity markets weakened throughout the afternoon and closed near the day’s lows and broke a 3-day winning streak.  The VIX index soared 13% during this same timeframe. VIX measures how fearful traders are of a big market move.  There’s much uncertainty this week in the markets due to the FOMC meeting and daily political posturing in the Euro Zone.

  As the market became risk averse, money flowed into Treasury bonds, leading to lower rates.

Corn Dec -16 783 (781-806.5) ; Mar -15 787; Dec’13 -5 656

Bean Nov -18 1719 (1716-1744); Mar -18 1662; Nov’13 -13 1355   Meal -6 521 (520-530)   Oil -10 5614

Wheat Dec -15 890; Jly -2.5 866 (860-875)     KC -19 904.5;  MGE -23 935

LC Oct -72 12575; Feb -40 13227; Jun -20 13227

FC Sep +65 14495; Nov +40 14807; Mar +17 15237

LH Oct +122 7257; Dec +107 7157; Apr -57 8577

Milk Sep -6 1879; Oct -43 1902

Oats -4 386.5

Rice -18 1477

US$ +.3%

Dow -52 13254

SP -9 1429

NAS -32 3104

Tran +26 5099

 VIX +1.90 16.28  +13.2%

WTI -15 9627

Brent +50 11475

Gas +1 303

NG +16.5 285

HO +1 316

Eth -3 248

Gold -12 1726

Slvr -35 3330

2-yr -.004 0.250%

5-yr -.006 0.638%

10yr -.014 1.654%

30yr -.016 2.806%