Market Update - January 23, 2014 - Kentucky Farm Bureau

Market Update - January 23, 2014

Posted on Jan 23, 2014
This is a weather market. Market reports credit drier So American forecasts and the ongoing extreme cold in the Midwest for today’s market strength.  Besides the obvious potential for less rain to affect So American corn and soybean yields, the extreme cold in the U.S. is increasing feed demand for cattle and worrying folks that more winter wheat will suffer damage.  Wheat futures are the strongest market on short-covering as chart support held and export sales pick up. A rally in soybean oil futures is boosting soybean price.

Live Cattle futures are trading lower after holding Wednesday’s gains overnight. If boxed beef values don’t increase to help pay for the huge jump in cash prices paid yesterday, more profit-taking may kick in as the funds are very long this market.

In Lean Hogs, the February contract is continuing its 4-5 week sideways trend with support at $85.00.  The summer LH contracts are trending higher and are now $13.00/cwt higher than the lows set in August 2013. The June 2014 LH contract broke out to a new contract high previously set in October.

Financial markets are reacting to negative economic reports from the US and China.

Corn Mar +3 430; Jly +2 441; Dec +3 450 Bean Mar +6 1286; Jly +6 1258; Nov +1 1114 Meal Mar +2 421; Oct -1 348 Oil +31 3815 Wheat Mar +9 570 (hi 578); Jly +8 582 (575-90) KC +12 636;  MGE +7 623 Oats -7 392 Rice -4 1546

LC Feb +17 14385; Jun -60 13292 FC Jan -40 17007; Apr -70 17027 LH Feb +15 8570; Apr +35 9332 Milk Feb -2 2205; Mar -22 2038

US$ -.7%

Dow -1% SP -.9% NAS -.9% Tran unch VIX +8.3% 13.90

WTI +.9% Brent -.4% Gas -.4% NG +2.4% HO +1.2% Eth -2.5%

Gold +1.8% Slvr +1.2%

5-yr -.08 1.63% 10yr -.06 2.81% 30yr -.05 3.71%

Blue Grass Stockyards Cattle Weekly Summary Report for the week ending 01/22/14

**Total receipts include 434 head sold in special cow sale Wed. night

Receipts:  2,952   Last Week:  3,987   Year Ago:  2,439 Compared to last week steer calves sold mostly steady except softer undertone on featherweights with good to very 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 this week.  Slaughter cows sold steady with good demand.  Slaughter bulls sold 2.00 higher with good demand.  Overnight snowstorm Monday made travel difficult restricting cattle movement Tuesday.

Total supply included 06% slaughter cows, less than 01% slaughter bulls, less than 14% replacements and 79% feeders.  Feeder supply 43% steers, 21% bulls, 36% heifers with 49% of feeders weighing over 600 lbs. 



Tagged Post Topics Include: Economics, Market updates


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