Market Update - January 8, 2015

Posted on Jan 8, 2015
CBOT futures are trading lower with the exception of Soybean Oil, which has moved to a level not seen since November 26. USDA weekly export sales report was positive for soybeans but not for corn and wheat. A sharp drop in soybean meal futures is weighing on soybean prices. Corn and wheat futures remain under pressure which started with yesterday’s trading. Chicago Wheat futures have dropped to new lows for this move but KC and MGE have not.

Nearby Ethanol futures have not been this low since the summer of 2010. The 2008 low was $1.37 (after hitting $2.95 6 months earlier). The highest price since 2006 was set in April 2014 at $3.57. Inventories of ethanol increased last week about 800,000 barrels, or 4.2%, to a near two-year high of 18.845 million.

Live cattle futures are down slightly in the nearby contracts despite a very strong boxed beef market and the rising cash cattle prices paid. Choice is up 2.26 to 255.01 and Select is up 3.34 to 245.46.

Lean Hog futures are trading lower as the cash hog market remains weak. FOB Plant Pork is up .16 to 82.69.

Corn Mar -1 395; Jly -1 410; Dec -2 418 Bean Mar -7 1049; Jly -6 1060; Nov -5 1020 Meal -5 348 Oil +52 3368 Wheat Mar -8 572; Jly -8 580; KC -8 612; MGE -4 611 Oats -1 301 Rice -9 1155

LC Feb -22 16567; Apr -22 16450; Oct +57 15490 FC Jan +257 22822; Mar +160 22192; Aug +115 22317 LH Feb -42 7890; Apr -75 8112; Jun -112 8977 Milk Jan +25 1605; Feb +23 1517

US$ +.2%

Dow +1.6% SP +1.5% NAS +1.6% Tran +1.9% VIX -11% 17.18

WTI -.1% Brent -.6% Gas -.8% NG +2% HO -.1% Eth -.8% Gold +.2% Slvr -.7%

5-yr +.023 1.496% 10yr +.062 2.014% 30yr +.080 2.594%

Blue Grass Stockyards Cattle Weekly Summary Report for the week ending 01/06/15 Receipts: 2178 Last Week: Holiday Year Ago: 594 No comparison with last week stockyards were closed two weeks for Holidays however market was most active for 500-600 lbs calves. Good demand for yearling steers in a light test. Light demand for plain to average quality Holsteins. Quality was average through good. Good demand for slaughter cows and good demand for slaughter bulls. Total supply included 09% slaughter cows, 02% slaughter bulls, 01% replacements and 88% feeders. Feeder supply 50% steers, 16% bulls, 34% heifers with 49% of feeders weighing over 600 lbs.

Tagged Post Topics Include: Economics, Market updates