Market Update - January 7, 2015

Posted on Jan 7, 2015
CBOT futures are trading mixed at midday with soybeans outperforming corn and wheat again today. Soybean oil gains are supporting soybean futures while soybean meal is weighing it down. Talk of dryness in South America offers support as does WTI Crude Oil bouncing higher today. A stronger US Dollar is a negative price factor, especially for Wheat since there’s so much world competition. Corn futures are pressured by the EIA report that shows ethanol production down while ethanol stocks get larger. The February Ethanol Futures contract has fallen from $1.78 in mid-November to $1.47 today. Spot ethanol futures recently peaked at $2.20 on December 2, 2014.

Cattle futures are trading mixed with the nearby contracts trading stronger as traders see a big move up in boxed beef values. CHOICE beef is up 1.76 to 252.09 and Select is up 1.73 to 241.78. The extreme cold will limit weight gains and some movement of cattle to market.

Lean Hog futures tested yesterday’s lows at the opening and moved higher throughout the morning on ideas of firm cash hog markets amid the extreme cold weather limiting movement. FOB Plant Pork is near steady at 82.49.

The SP500 ended a 5-day losing streak. Economic reports have been strong for the U.S. Weakness in Europe is causing the US Dollar to strengthen; some analysts see the US Dollar reaching PAR with the Euro. Vacations to Europe are becoming much more affordable. FOMC Minutes will be released at 2 pm EST.

Corn Mar -6 398; Jly -7 413; Dec -6 422 Bean Jan +2 1053; Jly +1 1067; Nov -1 1028 Meal Mar -1 354; Jly -1 346 Oil +53 3340 Wheat Mar -8 583; Jly -7 592 KC -8 623; MGe -6 619 Oats -1 303 Rice +12 1172

LC Feb +17 16620; Apr -2 16497; Oct -132 15442 FC Jan +87 22557; Mar +27 22115; Aug -100 22285 LH Feb +62 7920; Apr +60 8195; Jun +40 9090 Milk Jan +5 1570; Feb -1 1469

US$ +.6%

Dow +1.1% SP +1.1% NAS +1.1% Tran +.7% VIX -7.6% 19.51

WTI +1.3% Brent -.3% Gas -1.7% NG -.1% HO -2% Eth -1.5% Gold -.6% Slvr -.5%

5-yr -.004 1.489% 10yr +.017 1.980% 30yr +.019 2.542%

KENTUCKY CASH GRAIN PRICES Click Here

 KENTUCKY LIVESTOCK AUCTIONS --  Click Here 

Subscribe to “Between the Rows” e-newsletter from the KFB Commodity Division by Clicking Here.

Tagged Post Topics Include: Economics, Market updates