Market Update - January 22, 2014

Posted on Jan 22, 2014
CBOT futures are trading mixed with additional weakness in old-crop soy contracts with little change in corn and wheat futures.  A reversal in yesterday’s soy oil’s gains is adding to slight weakness in soybean meal futures to hit the nearby soybean contract. March Soybean has support at 12.625 to 12.665. Focus will remain on the rain forecasts for Argentina and Brazil, as well as watching for confirmation of China switching US soybean exports to South America origins.

Wheat futures are bouncing along chart support at contract lows.  Short-covering and ideas that US wheat is competitively prices are holding this market up for now.

Nearby Live Cattle futures are slightly higher but within Tuesday’s trading range. Given how high and far prices have run, it’s no surprise to see a pause in the rally to see how retailer demand reacts.  Stay alert for a reversal that causes a round of profit-taking by the fund longs.

Lean Hog futures are lower in the absence of friendly cash hog and pork markets. The premium February LH contract is down the most.

Energy futures (excluding ethanol) are up sharply on expectations of falling supplies of distillates and the extended severe cold spell driving up consumption of nat gas and fuel oil.

Corn Mar +1 426; Jly unch 439; Dec unch 447 Bean Mar -6 1274; Jly -4 1246 ; Nov unch 1109 Meal Mar unch 416; Oct +1 348 Oil -24 3786 Wheat Mar -1 561; Jly -1 574 KC +3 625;  MGE +3 617 Oats -1 398 Rice +2 1547

LC Feb +25 14180; Apr +15  14037; Oct -10 13305 FC Jan -47 16932; Apr -30 16897; Aug -40 17090 LH Feb -87 8510; Apr -17 9220; Jun -35 10150 Milk Feb -22 2218; Mar -15 2090

US$ unch Dow -.4% SP -.1% NAS +.2% Tran +.9% VIX +1.6% 13.08

WTI +1.8% Brent +1% Gas +1.4% NG +4.4% HO +.5% Eth -3%

Gold -.2% Slvr -.1%

5-yr +.05 1.68% 10yr +.03 2.84% 30yr -.01 3.74%

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Tagged Post Topics Include: Economics, Market updates