Market Update - December 16, 2014

Posted on Dec 16, 2014
CBOT futures are following the same pattern seen Monday – lower beans, steady corn and soaring wheat. The surge in wheat futures to new highs for this fall’s rally accelerated on technical buying as resistance gave way. As Russia’s currency crashes, there’s increased risk it will restrict grain exports to help at home where inflation will kick in. Soybean futures remain under pressure from factors mentioned yesterday. A mid-morning turnaround in crude oil lifted soy futures temporarily but the oil rally faded and soybeans moved to new lows.

Both Live Cattle and Feeder Cattle futures are down the daily $3.00/cwt limit. The recent long liquidation by the funds has spread to the Live Cattle pit as the longs sell LC to “hedge” their long FC position that they can’t get liquidated.

Lean Hog futures are also moderately lower on spillover pressure from the limit-down losses in cattle. Traders are generally concerned that demand isn’t keeping up with supplies.

Corn Mar -2 406; Jly -1 421; Dec -2 430 Bean Jan -14 1025; Jly -14 1042; Nov -10 1001 Meal jan -7 358; Jly -4 342 Oil -48 3179 Wheat Mar +8 627; Jly +6 626 KC +11 658; MGE +5 637 Oats unch 313 Rice -31 1212

LC Dec -300 limit 15897; Feb -300 15875; Jun -300 14965 FC all contracts down the $3.00 limit. Jan 21960; Mar 21525; Aug 21522 LH Feb -75 8252; Apr -60 8422; Jun -57 9067 Milk Jan +19 1580; Feb +15 1539

US$ - .5%

Dow +.9% SP +.8% NAS +.4% Tran +.4% VIX +4.8% 21.41

WTI -.4% Brent -2% Gas -2% NG -1.2% HO -2.1% Eth -4.5% Gold -1% Slvr -4.5%

5-yr -.046 1.531% 10yr -.040 2.076% 30yr -.032 2.712%

Blue Grass Stockyards Cattle Auction Report for 12/15/2014 Receipts: 1803 Last Monday: 1225 Year Ago: 1776 Compared to last week steer and calves sold 3.00 to 7.00 lower except featherweights steady; weaned 700-800 lbs steers in good demand however 800-1000 lbs steers 10.00 lower in a limited comparison. Heifer calves sold 2.00 to 5.00 lower except featherweights sold steady; over 600 lbs heifers in light demand. CME cattle futures down the limit for several days has continued to push prices downward. Very light demand for big fleshy balling calves. Quality was plain through good. Slaughter cows sold 1.00 to 2.00 lower with moderate demand. Slaughter bulls sold steady with good demand.

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Tagged Post Topics Include: Economics, Market updates