Market Update - December 2, 2013

Posted on Dec 2, 2013
CBOT futures have had a volatile day of trading going back to the Sunday evening opening.  Soybean futures are driving the market today. Soybean futures were up nicely overnight on export optimism but dropped sharply when electronic trading came back online after the 7:45 to 8:30 a.m. CST break.  Some news reports have China rejecting a shipload of US soybeans.  Since there was also a new export sale reported, the rejection could be a strategy to keep price down and/or to slow immediate deliveries.  Soybean meal futures were especially hit.  Soybean oil rallied as traders unwound bull spreads.

Corn and wheat futures seem to be following the direction of soybean futures.  Corn futures have traded below previous lows that offered chart support. MGEX December Wheat moved to a new contract low.  Technically, today’s price action at this moment is quite negative for all three CBOT commodities.

Cattle futures are down a bit as traders wait to get a handle on what boxed beef values will do.

Lean Hog futures are up somewhat with the December LH contract in a sideways channel between 85.00 and 86.50.

Energy futures are rising thanks to positive manufacturing data from China and the U.S.  Also the extreme cold moving across the US this week should use more energy.  The positive economic data is also lifting Treasury yields. Corn Dec -4 411; Mar -6 419; Dec14 -5 449 Bean Jan -16 1320; Jly -8 1280; Nov +1 1148 Meal Jan -9 428; Jly -6 398 Oil +29 4075 Wheat Mar -7 662; Jly -6 664 KC -3 706;  MGE -3 704 Oats -5 326 Rice unch 1596

LC Dec -60 13287; Apr -35 13462 FC Jan -17 16530; Apr -5 16635 LH Dec +32 8600; Apr +10 9400 Milk Dec +9 1856; Jan +16 1788

US$ +.2%

Dow unch SP +.1% NAS unch Tran +.7% VIX +1% 13.85

WTI +1.2% Brent +2.1% Gas +1.8% NG -.3% HO +1.5% Eth -.1%

Gold -1.9% Slvr -2.8%

5-yr +.07 1.44% 10yr +.06 2.81% 30yr +.05 3.86%

 

KENTUCKY CASH GRAIN BIDS Click Here

 

Tagged Post Topics Include: Economics, Market updates