CBOT futures are mostly lower on profit-taking following Wednesday’s strong rally. March Corn is still above the $7.36 resistance level taken out yesterday. South American weather is still in focus as are multiple private production forecasts coming out. Traders will key in on USDA’s WASDE report on Friday, February 8, for “official” forecasts.

Live Cattle futures are trading near steady despite Wednesday’s fed cattle trade at $125/cwt, up about $3 from last week. However, that still leaves February futures at a $3 premium to the cash market. Boxed beef values were steady/weak.

Lean Hog futures are up strongly on cash hog market strength. The Pork Cutout dropped $1.12 yesterday. The February 2013 contract traded through chart resistance at December’s high. The last resistance point is 88.25, November’s highest price for the February contract.

Treasury yields are weaker due to the FOMC stating the Federal Reserve will continue to buy over $80 billion/month of securities.

Corn Mar unch 740; Jly unch 732; Dec -2 591 Bean Mar -15 1463; Jly -14 1443; Nov -10 1322   Meal Mar -6 426; Oct -3 371   Oil -22 5238 Wheat Mar -5 782; Jly -6 794   KC -3 838; MGE -2 867

LC Feb +2 12802; Apr +5 13297; Oct +12 13315 FC Mar +52 14962; May +32 15502; Aug +30 16027 LH Feb +70 8780; Jly +12 9822 Milk Feb +11 1718; Mar +29 1700 Oats -1 361 Rice +5 1545 

US$ -.1%

Dow -.2% SP -.3% NAS -.1% Tran +.1%   VIX +.3% 14.36

WTI -.6% Brent +.4% Gas -1% NG +1% HO +.2% Eth -.1%

Gold -1.2% Slvr -2.8%

5-yr -.008 0.883% 10yr -.012 1.990% 30yr -.009 3.177% 

USDA will release its CATTLE INVENTORY report tomorrow afternoon.  CME Group shows the average trade guess at 89.135 million head, down 1.8% from year earlier, and the smallest U.S. herd since 1952.