Market Update - December 21, 2012

Posted on Dec 21, 2012
CBOT futures are trading higher from short-covering that’s locking in profits after this week’s major losses.  CBOT trades only until Noon on Monday.  Traders are reducing positions for the Christmas season, and through the New Year.  The financial markets have become very volatile as it looks less likely there will be a 2012 solution to the “fiscal cliff” problem.  Money is moving back out of equities into Treasuries for their “safety”.

Livestock futures are trading little changed today. Given the short slaughter weeks for the next two weeks, markets will be challenged.

USDA issued the FINAL RULE on Animal Disease Traceability. A Q&A Sheet is available by clicking here.  The 145-page document is available by clicking here.

Corn Mar +3.5 700; Jly +3 700; Dec +1 605

Bean Jan +18 1427; Jly +15 1406; Nov +10 1298 Meal +4 432; Oct +4 372 Oil +85 4876

Wheat Mar +4 794; Jly +3 810; KC +3 847;  MGE +2 886

LC Dec -20 12875; Feb -20 13330; Oct +10 13510 FC Jan -10 15217; Apr -22 15642; Aug -55 16150

LH Feb -2 8642; Apr +12 9130; Jly +2 9990

Milk Jan +14 1794; Feb +3 1805

Oats -1 359;

Rice -4 1523

US$ +.5%

Dow -1.4%

SP -1.4%

NAS -1.5%

Tran -.8%

VIX +11% 19.62

WTI -2%

Brent 1.2%

Gas -1%

NG -.4%

HO -1.1%

Eth +.8%

Gold +.5%

Slvr +1.3%

5-yr -.025 0.753% 10yr -.046 1.758% 30yr -.050 2.932%

CROP INSURANCE USAGE GREW TO 86% IN 2012 According to the National Crop Insurance Services tabulation of USDA data, 86% of all planted U.S. farmland – some 281 million acres – is protected by crop insurance this year, up 2% from 2011 and a nearly three-fold increase from the late 1990s when approximately 30% of farmers purchased policies.

The growth in coverage has been fueled by a number of factors, NCIS says, including fewer federal risk management alternatives for farmers, many farmers' desire to have increased control of risk management choices, federally-funded premium subsidies for those who purchase policies, a wide array of policy options and the value banks place on crop insurance when making loans.

In 2012, some 1.2 million crop insurance polices were sold, covering 128 different crops. While 84% of the polices sold covered corn (34%), soybeans (31%) and wheat (19%), policies were also written for specialty crops including cherries, almonds, cranberries and avocados, NCIS says.   Source: NCIS

Tagged Post Topics Include: Economics, Market updates