Corn, soymeal and soybean futures are making news highs for the day as the rally continues on news of export corn sales and strong cash soybean meal demand. With corn futures near key chart support at Monday’s close, the strong rally is partially short-covering. January Soybean futures are now near last week’s high of 13.535 which represents first level resistance. A close above that level could lead to a run at $13.75 or $14.00.

Wheat futures rallied with the corn market but have since retreated and are now narrowly mixed.

Cattle futures are trading lower with feeders pressured by the higher corn prices. December Live Cattle futures have a triangle chart formation that is likely to break out this week.

Lean Hog futures edged higher overnight on Monday’s sharply higher pork cutout value but have weakened throughout the morning to make new lows – the trend is still down with support at $85.00.  At midday, the pork cutout value is near steady.

Financial markets are indicating traders are a little nervous about what the FOMC will do tomorrow with its bond-buying program.

Corn Mar +4 428 (422-429); Jly +4 443; Dec +5 455 Bean Jan +11 1349 (1328-50); Jly +8 1302; Nov +3 1165 Meal Jan +7 446; Jly +5 415 Oil -19 3956 Wheat Mar +2 623; Jly +1 630 (627-33) KC unch 665; MGE -1 653 Oats +4 350 Rice -2 1553

LC Dec -12 13187; Jun -40 12857 FC Jan -100 16740; Apr -67 16727 LH Feb -70 8592; Jun +10 9910 Milk Dec +6 1904; Jan +42 1909

US$ steady

Dow -.2% SP -.4% NAS -.3% Tran -.5% VIX +3% 16.52

WTI +.1% Gas -.2% NG -.7% HO -.8% Eth +1.6%

Gold -1.1% Slvr -1.2%

5-yr -.03 1.50% 10yr -.02 2.86% 30yr -.01 3.89%

Blue Grass Stockyards Cattle Auction Report for 12/16/2013 Receipts:  1,776   Last Monday:  514   Year Ago:  1,501

Compared to last week steer calves under 500 lbs sold 5.00 to 10.00 higher with very good demand over 500 lbs sold firm and yearling steers sold 1.00 higher with very good demand.  Heifer calves under 400 lbs and over 500 lbs sold 5.00 to 6.00 higher400-500 lbs sold steady and yearling heifers sold steady in a limited comparison.  Bull calves sold 5.00 to 10.00 higher with very good demand.  Quality was average through attractive.  Slaughter cows sold firm with good demand.  Slaughter bulls sold 2.00 higher with good demand.

Total supply included 07% slaughter cows, 01% slaughter bulls, 01% replacements and 91% feeders.  Feeder supply 34% steers, 24% bulls, 42% heifers with 38% of feeders weighing over 600 lbs.

Glasgow,Ky  Farmers Livestock Market ( Weigh in sale ) Weighted Average Report for 12/16/12 Receipts:2080   For the Week:2311   Last Week:1015   Last Year:1717

Compared to Last Week: Steer and heifer calves 6.00-10.00 higher. Slaughter cows 3.00 higher. Slaughter bulls 4.00-5.00 higher.  The supply included 23.2 percent steers,42.9 percent heifers, with 20.1 percent weighing over 600 lbs.12 percent slaughter cows and bulls. Farmers Livestock Market will be closed Dec.23 and 30 for the Holidays

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