Market Update - January 21, 2014

Posted on Jan 21, 2014
Last week’s rally in soybean and soybean meal futures has been wiped out this morning, thanks to plentiful rains in Argentina’s soybean fields.  The selling began after 4:00 am CT and accelerated downward at 8:45 am.  Selling in beans/meal is long liquidation, as well as spread unwinding (long bean/meal, short soyoil) as the soybean oil market rallied on a stronger palm oil market.

Corn and wheat futures are lucky to have avoided the carnage in the soy complex. The funds may be continuing to buy corn/wheat to reduce their large short positions in those markets which have shown some signs of “bottoming”.

Nearby Live Cattle futures are up strongly after boxed beef values jumped another $5/cwt on Monday (USDA reported even though federal holiday). Choice up 4.85 at 236.56; Select up 5.13 at 234.45/cwt.

Corn Mar -2 422; Jly -2 436; Dec -3 446 Bean Mar -29 1287; Jly -27 1255; Nov -15 1110 Meal Mar -16 419; Oct -9 346 Oil +46 3820 Wheat Mar +1 564; Jly unch 577 KC -1 622;  MGE unch 618 Oats unch 399 Rice -4 1556

LC Feb +137 14172; Apr +105 14035; Oct +57 13307 FC Jan -42 16957; Apr +65 16930 LH Feb -145 8602; Apr +42 9232 Milk Jan unch 2094; Feb +28 2220

US$ steady

Dow -.7% SP -.2% NAS +.1% Tran steady VIX +6.3%  13.23

WTI +.2% Brent +.8% Gas +1% NG +2.2% HO +1.4% Eth -.6%

Gold -.9% Slvr -2.1%

5-yr +.01 1.64% 10yr unch 2.83% 30yr -.01 3.74%

Blue Grass Stockyards    Cattle Auction Report for 01/20/2014

Receipts:  1,686   Last Monday:  2,343   Year Ago:  1,320

Compared to last week steer calves sold mostly steady except softer undertone on featherweights with moderate to good demand. Heifer calves sold 3.00 to 4.00 higher with very good demand.   Yearling steers and heifers sold firm in a limited comparison.  Quality was average through attractive with many good quality packages.  Quality not quite as good as last week which may softened featherweight steer market.  Still very good demand for middleweight steers and exceptionally good demand for middleweight heifer calves.  Slaughter cows sold steady with good demand.  Slaughter bulls sold 2.00 higher with good demand.

Total supply included 08% slaughter cows, 01% slaughter bulls, 01% replacements and 90% feeders.  Feeder supply 33% steers, 23% bulls, 44% heifers with 43% of feeders weighing over 600 lbs. 

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Tagged Post Topics Include: Economics, Market updates