Market Update - November 12, 2013

Posted on Nov 12, 2013
Corn is down slightly after two days of strong gains on short-covering following Friday’s USDA report which put 2013-14 ending stocks at 1.89 billion bushels, not quite as large as expected. The spec funds are near-record short CBOT Corn. Corn futures would likely be well-supported at last week’s low of $4.15 ½.

Soybean futures are higher for the fourth straight day with the January 2014 contract near chart resistance at $13.13, the October high.  Support is coming from the smaller than expected increase in 2013-14 ending stocks estimate from USDA and from a pop in the soyoil market due to higher palm oil prices (up nearly 3 pct today) due to excessive rainfall and the super typhoon that hit the Philippines and southeast Asia. Colder weather is supportive to meal.

Wheat futures are mostly lower, pressured by Friday’s negative USDA supply-demand projections and negative chart patterns – prices are not far from key support areas.

Cattle futures are little changed. The 2-day rally has ended after boxed beef values slipped Monday afternoon.

Lean Hog futures are down as traders attitudes waver on supplies.

Treasury Yields are up sharply on recent good economic news that could increase chances the Federal Reserve begins tapering. Current consensus by economists is March 2014. Corn Dec -1 433; Jly -1 461; Dec14 -2 474 Bean Jan +14 1315; Jly +15 1273; Nov +7 1174 Meal Dec +5 427; Jly +4 393 Oil +52 4094 Wheat Dec +1 647; Jly -2 663 KC unch 706; MGE unch 704 Oats -1 339 Rice +2 1565

LC Dec -12 13262; Apr -35 13492 FC Nov +62 16482; Apr +25 16580 LH Dec -62 8742; Apr -60 9345 Milk Nov +1 1883; Dec +6 1815

US$ +.1% Dow -.4% SP -.4% NAS -.4% Tran +.5% VIX +3.4% 12.96

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

Gold -.5% Slvr -2%

5-yr +.14 1.45% 10yr +.03 2.77% 30yr +.14 3.86%

Blue Grass Stockyards Cattle Auction Report for 11/11/2013

Receipts:  2,787   Last Monday:  2,208   Year Ago:  1,719

Compared to last week steer and heifer calves opened steady to 3.00 lower however market rallied after lunch as calf quality improved closing steady with last week.  Few featherweight calves under 400 lbs 3.00 to 7.00 lower in a light test with light demand as temperatures are predicted to fall drastically over next two days reducing demand for light calves.  Yearling steers light test and not fully established.  Yearling heifers sold steady to firm in a light test.  Slaughter bulls sold steady to 2.00 lower with light to moderate demand.  Slaughter cows sold 1.00 to 3.00 lower with moderate demand.

Total supply included 09% slaughter cows, 01% slaughter bulls, Less than 02% replacements and 88% feeders.  Feeder supply 33% steers, 25% bulls, 42% heifers with 39% of feeders weighing over 600 lbs. KENTUCKY CASH GRAIN BIDS Click Here

Tagged Post Topics Include: Economics, Market updates