Market Update - December 19, 2012

Posted on Dec 19, 2012
CBOT futures are lower again today with first-half 2013 soybean meal contracts taking the biggest percentage losses. Less concern about South American growing conditions and more concern about export demand contribute to the selling pressure. March Corn is testing $7.05 support on the weekly continuation chart ( click for chart).  Wheat is outperforming corn and soybeans as price holds above the key $8.00 level.

Cattle futures are higher today, correcting some of Tuesday’s sharp losses.  But given December’s large premium to the last cash price traded, don’t expect a major rally.  Cattle are being delivered against short December futures contracts.  Feeder futures are up nicely as CBOT futures drift lower.

Lean hog futures continue to rally today after prices turned higher Tuesday. February futures are trading in the middle of the 30-day range.

The financial markets are less confident about a “fiscal cliff” deal today.  The VIX Index which measures “fear” in the market is up 6% today after Tuesday’s sharp drop.  Treasury yields also fell back this morning after yesterday’s surge.

Corn Mar -11 709 (low 706); Jly -10 711; Dec -6 617

Bean Jan -15 1451 (low 1449); Jly -13 1419; Nov -4 1306 Meal Jan -7 438; Oct unch 371 Oil +4 4921

Wheat Mar -2 900; Jly -3 826 KC -3 858; MGE -1 900

LC Dec +27 12850; Feb +52 13347; Oct +5 13580 FC Jan +72 15292; Apr +60 15667; Aug +12 16182

LH Feb +75 8602; Jly +2 9995

Milk Dec -3 1865; Jan +5 1811

Oats -4 376

Rice -3 1512

US$ -.2%

Dow -.1%

SP -.1%

NAS unch

Tran +.6%

VIX +6% 16.53

WTI +1.6%

Brent +1.1%

Gas +1.5%

NG -2.8%

HO +1%

Eth -1.3%

Gold +.1%

Slvr -1.2%

5-yr -.009 0.770% 10yr -.032 1.791% 30yr -.029 2.972%

Tagged Post Topics Include: Economics, Market updates