Market Update - January 9, 2014

Posted on Jan 9, 2014
CBOT futures are trading strongly in both directions.  Corn and wheat futures are down sharply moving new contract lows.  The March Corn contract has now traded below the lowest price the December 2013 Corn contract traded. Thus the weekly continuation chart is at risk of turning bearish.  While the Chicago wheat contracts are hitting new lows, the KC and MGE March contracts are right at chart support. Today’s USDA Export Sales report had disappointing totals for corn, wheat and soybeans.

Soybeans are up slightly on apparent short-covering and support from soybean oil futures.

Traders are positioning for the big USDA reports that come out in 24 hours.

Cattle futures are up nicely on expectations that packers will have to pay up for supply near term after the recent cold snap cut weight gains. Feeders benefit from the fall in corn prices.

Lean Hog futures are down slightly as it appears the cash markets are steady to weaker.

Corn Mar -9 408; Jly -8 424; Dec -8 437 Bean Mar +4 1273; Jly +3 1240; Nov -2 1101 Meal mar +2 415; Oct -1 344 Oil +3 3772 Wheat Mar -9 580; Jly -9 589 KC -5 632; MGE -2 625 Oats +8 385 (up 30 cents since Jan 1 – CHEERIOS!) Rice -6 1548

LC Feb +65 13717; Jun +30 13025 FC Jan +85 16932; Apr +65 16982 LH Feb -12 8545; Apr -12 9097 Milk Jan +5 2044; Feb -16 2029

US$ steady

Dow -.4% SP -.3% NAS -.5% Tran +.2% VIX +2.5% 13.19

WTI -.3% Brent +.1% Gas +.4% NG -2.3% HO -.3% Eth -.2%

Gold -.1% Slvr -.5%

5-yr steady 1.765% 10yr -.01 2.98% 30yr -.01 3.885%

Blue Grass Stockyards   Cattle Weekly Summary Report for the week ending 01/07/14

Receipts:  594   Last Week:  no sale   Year Ago:  3,114

No comparison - Lexington stockyards was closed the last two weeks for holiday, however market still active especially for good quality middle-weight calves.  Yearlings lightly tested.   Quality was plain to good.  Very good demand for slaughter cows.  Good demand for slaughter bulls.  Near record cold temperatures and bitter wind chills early this week restricted cattle movement.

Total supply included 25% slaughter cows, 03% slaughter bulls, 03% replacements and 69% feeders.  Feeder supply 37% steers, 23% bulls, 40% heifers with 43% of feeders weighing over 600 lbs. KENTUCKY CASH GRAIN BIDS Click Here

Tagged Post Topics Include: Economics, Market updates