Market Update - December 12, 2014

Posted on Dec 12, 2014
Corn and wheat futures are sharply higher on a rally that launched at 4:30 a.m. CST. Soybean futures tried to follow corn/wheat higher but lost all of the gains mid-morning before rising again. The 4:30 am timing of the rally indicates the stimulus was a key news item. It’s reported that China may have more interest in U.S. DDGS which would encourage ethanol production and more ethanol may be consumed if people start driving more with the sharply lower fuel prices. Wheat received an extra boost from talk again that Russia could limit exports.

Feeder Cattle futures are down the $3.00 limit again today as cash cattle and beef drop in value and corn futures surge higher. Live Cattle futures sank sharply with FC when markets opened at 8 am but traded higher within an hour. Choice Beef down 2.16 to 245.63 and Select down 1.01 234.93. The January FC contract gapped lower and is now below the mid-October; next support is not easily identified. The speculators who have been long cattle for a long time wish they’d taken profits sooner – missed $11-12/cwt.

Lean Hog futures also dropped sharply at the opening bell but have bounced back some with the help of the cash pork market. FOB Plant Pork up 1.13 to 92.06 on a 19 pct jump in the value of picnics.

Analysts are blaming the crashing energy market again for the stock market’s decline. The connection is that lower energy price = lower price = weaker global economy. The SP 500 is down 17 to 2018. Chart support comes in at 2000. The October low was 1820.

Corn Mar +7 406; Jly +7 420; Dec +5 430 Bean Jan unch 1042; Jly -2 1058; Nov -2 1015 Meal Jan -2 369; Jly -1 349 Oil +3 3205 Wheat Mar +15 612; Jly +11 612 KC +14 642; MGE +10 625 Oats -2 309 Rice +19 1228

LC Dec -20 16220; Feb -5 16252; Jun -35 15430 FC all down $3.00 limit Jan 22560; Mar 22125; Aug 22122 LH Feb -25 8410; Apr -45 8525; Jun -52 9132 Milk Dec +3 1778; Jan -13 1577

US$ -.5%

Dow -1.1% SP -.9% NAS -.6% Tran -.5% VIX +2.9% 20.67

WTI -3% Brent -2.5% Gas -1.25 NG +3.4% HO -1.6% Eth -1% Gold -.2% Slvr +.3%

5-yr -.082 1.521% 10yr -.077 2.101% 30yr -.066 2.759%

Paris KY, Paris Stockyards *Cattle weighed at time of sale.* Cattle Receipts: 2933 Last week: 3154 Last year: 2149 Compared to last week: Steers below 700 lbs 2.00 to 5.00 higher, above 700 lbs 3.00-6.00 lower. Heifers below 600 lbs 3.00 to 5.00 higher, some 6.00 to 8.00 higher, above 600 lbs steady to 3.00 lower. Slaughter Cows and Slaughter Bulls sold steady.

BLUEGRASS SOUTH Stanford,KY CATTLE WEIGHED AT TIME OF SALE Weighted Average Report for 12/11/2014 Receipts: 2026 Last Week: 2478 Year Ago: 2522 COMPARED TO LAST THURSDAY:FEEDER STEERS UNDER 400 LBS 10.00-15.00 HIGHER,400-600 LBS 2.00-4.00 HIGHER,OVER 600 LBS 2.00-4.00 LOWER,FEEDER HEIFERS UNDER 400 LBS STEADY,400-600 LBS 3.00-5.00 HIGHER,OVER 600 LBS 3.00-5.00 LOWER, VERY GOOD DEMAND FOR FEEDERS UNDER 600 LBS AND MODERATE TO GOOD DEMAND FOR OVER 600 LBS, SUPPLY INCLUDED 71 PERCENT OVER 600 LBS AND 27 PERCENT HEIFERS, SLAUGHTER COWS 3.00-5.00 LOWER,SLAUGHTER BULLS NOT ENOUGH FOR TEST, MODERATE DEMAND FOR SLAUGHTER CLASSES

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Tagged Post Topics Include: Economics, Market updates