CBOT futures are mostly higher in follow-through buying from last week’s sharp advance in prices. CFTC report confirmed the funds have been rebuilding their corn and soybean long futures positions. Traders are concerned about drier Argentinian weather lowering soybean yields. Wheat futures are lower.

Cattle futures are moderately higher, gaining back some of last week’s huge losses. Fed cattle ended up trading $1-2/cwt lower out of the feedlots. Supportive this morning is indications that Japan may be moving closer to allowing beef imports from U.S. animals up to 30 months of age.

Lean Hog futures are trading nearly unchanged waiting for direction from the cash markets. The February 2013 contract is sitting near the middle of the December-January trading range with prices forming a “triangle” pattern that will see a breakout up or down soon.

Corn Mar +.5 728; Jly +1 722; Dec +1 591

Bean Mar +22 1451; Jly +21 1431; Nov +15 1307   Meal Mar +7 422; Oct +4 365   Oil +60 5228

Wheat Mar -9 782; Jly -8 796   KC -8 836; MGE -6 868

LC Feb +105 12600; Apr +87 13070; Oct +52 13135 FC Jan +82 14472; Apr +90 14975; Aug +102 15807 LH Feb +2 8537; Apr +20 8827; Jly +17 9682 Milk Jan -1 1810; Feb -3 1725

Oats +6 362 Rice +16 1532

 US$ -.1%

Dow steady SP -.1% NAS -.3% Tran +.6%   VIX +5.5% 13.14

WTI +.4% Brent +.1% Gas +1% NG -1.1% HO +.5% Eth +.7%

Gold +.5% Slvr +.8%

5-yr -.006 0.768% 10yr -.011 1.853% 30yr -.010 3.041%

Blue Grass Stockyards Cattle Auction Report for 01/21/2013   Receipts:  1,320   Last Monday:  1,029   Year Ago:  956        Compared to last week, steer calves sold steady to 3.00 lower with moderate demand. Heifer calves under 600 lbs sold steady with moderate demand, over 600 lbs sold 3.00 lower with light demand.  Yearling steers and heifers not fully established.  Slaughter cows sold 2.00 higher with moderate demand.  Slaughter bulls sold steady with moderate demand.

   Total supply included 11% slaughter cows, less than 02% slaughter bulls, less than 01% replacements and 86% feeders.  Feeder supply 31% steers, 29% bulls, 40% heifers with 45% of feeders weighing over 600 lbs.