CBOT futures are lower across the board as traders focus on the potential for large crops in South America and then next fall in the U.S.   Weather forecasts are favorable for South America.

The sharp drop in both old and new-crop corn futures is challenging contract lows posted just last week. Soybean oil and Chicago Wheat are making new contract lows.  Strength in soybean meal futures has kept old crop soybean futures off the recent lows, but the new-crop November contract has dropped to another contract low.

Friday’s USDA reports on production, stocks and supply-demand forecasts could cause sharp market reactions.   The trade seems to be expecting a bearish report.

Cattle futures are trading higher today after two days of higher boxed beef values.  Feeder futures are benefitting from the sharp losses at the CBOT.  The January FC contract hasn’t been this high since October 2013. Contract high resistance is around 169.42.

A better-than-expected private jobs report by ADP caused Treasury yields to rise after the weakness seen earlier this week.   This positive economic news suggests the tapering by the Federal Reserve will move forward.  Traders will be studying the FOMC minutes at 2 pm EST from the December meeting when the $10 billion/month taper was approved.

Corn Mar -7 419; Jly -6 434; Dec -5 448 Bean mar -5 1271; Jly -6 1241; Nov -8 1108 Meal Mar unch 416; Oct -1 348 Oil -41 3752 Wheat Mar -9 593; Jly -9 602 KC -3 642; MGE +2 632 Oats +11 374 Rice +2 1550

LC Feb +55 13707; Jun +57 12990 FC Jan +77 16882; Apr +72 16912 LH Feb +20 8572;  Apr +35 9107 Milk Jan +12 2040; Feb +35 2050

US$ +.2%

Dow -.4% SP steady NAS +.4% Tran +.2% VIX +1% 13.05

WTI -.8% Brent +.2% Gas -.4% NG -.7% HO unch Eth -2.3%

Gold -.7% Slvr -2%

5-yr +.06 1.74% 10yr +.05 3.00% 30yr +.04 3.92%

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