Market Update - December 27, 2013

Posted on Dec 27, 2013
CBOT futures are little changed at midday.  Overnight weakness in the US dollar’s value boosted CBOT prices but futures have been weakening through the morning trade. Following yesterday’s big corn/bean sell-off and wheat’s drop to new contract lows, the short-term outlook appears somewhat negative.  Southern Hemisphere crop development seems quite good, so global supplies should be plentiful once we get past the nearby soybean tightness out of the U.S.  China has been rejecting corn and DDGs imports which adds uncertainty about their import needs.

Note that the spec funds were liquidating some of their big long position yesterday. Accelerated selling could happen if January 2014 Soybean futures drop below $13.09 and $13.00.  March Corn needs to stay above $4.185 and then $4.10 (December Corn’s low).

Cattle futures are sharply higher and near the day’s highs.  The market rallied as soon as pit trading began.  I’m not aware of the reason for the strength, although the weaker US dollar should help exports.

Lean Hog futures are slightly higher following stronger hog and pork prices Thursday.

Corn Mar unch 426; Jly unch 442; Dec -1 454 Bean Jan +4 1322; Jly +3 1281; Nov -1 1151 Meal Jan +1 442; Jly unch 408 Oil +11 3898 Wheat Mar -2 604; Jly -3 616 KC -6 639; MGE -5 633 Oats +3 355 Rice -4 1540

LC Dec +117; Feb +105 13520; Jun +60 12995 FC Jan +112 16772; Apr +97 16915; Aug +70 17052 LH Feb +35 8565; Apr +27 9092; Jun +7 10017 Milk Dec -3 1898; Jan -8 1952

US$ -.35%

Dow steady SP steady NAS -.2% Tran -.3% VIX +.6%  12.41

WTI +.9% Brent +.3% Gas +.3% NG -1.8% HO +1.3% Eth +.6%

Gold +.1% Slvr +.6%

5-yr -.01 1.74% 10yr unch 3.00% 30yr +.01 3.93% 

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Tagged Post Topics Include: Economics, Market updates