Soybean futures rallied strongly today, supported by the soybean meal market. Traders are focused on a warmer, drier forecast in Argentina. The early wet conditions during planting may make the crop more needy of timely rains. Private bean yield estimates are slipping.

Corn found some pressure from a significant drop in ethanol production in the latest weekly report. However, the South American weather could impact corn futures.

CBOT Wheat futures closed slightly higher, in the upper half of the trading range. Wheat has recovered back to the highs seen on the first trading day of 2013 (before prices sold off sharply). March Wheat has rallied four straight days following Friday’s friendly USDA reports that tightened ending stocks and showed less-than-expected acreage planted last fall(2012). Spec Funds remain very short CBOT Wheat and are gradually buying it back.

Live Cattle futures closed sharply lower and near the day’s lowest prices. Feedlot trade began the week at $125/cwt, down $1 from last week. This cash weakness prompted fund liquidation of February futures which had been maintaining a big premium to cash. February has chart support at $127.90, but traders need to see better consumer demand through a rising beef cutout value. Select beef continues to gain value on Choice beef – the spread is only $7.63/cwt today.

Despite the crash in cattle futures, Lean Hog futures held up well. The Pork Cutout value increased 49 cents to $84.25/cwt.

Corn Mar +1 731; Jly unch 721; Dec +3 592

Bean Mar +23 1436.5; JLy +20 1413; Nov +14 1297 Meal Mar +7 419; Oct +5 367   Oil +44 5131

Wheat Mar +2 785; Jly +3 797   KC +4 842; MGE +5 871

LC Feb -190 12852; Apr -172 13270; Oct -117 13220 FC Jan -125 14707; Apr -205 15025; Aug -155 15835 LH Feb -10 8515; Apr -17 8742; Jly -12 9647 Milk Jan +4 1815; Feb -12 1753

Oats +1 357 Rice +9 1515

US$ +.1%

Dow -24 13511 SP unch 1473 NAS +7 3118 Tran +4 5644 VIX -.13 13.42

WTI +95 9423 Brent +31 11061 Gas +2 273 NG -2 344 HO unch 301 Eth unch 234

Gold -4 1680 Slvr -3 3150

2-yr -.004 0.253% 5-yr -.010 0.737% 10yr -.015 1.820% 30yr -.011 3.010% 

KFB Legislative Report No. 2   http://kyfbnewsroom.com/2013/01/16/legislative-report-no-2-2013-kentucky-general-assembly/

  Mt. Sterling, KY Blue Grass East Stockyards Cattle Auction Report for 01/16/2013  Cattle Receipts:  611   Last Week:  1,341   Weekly Receipts:  933            Compared to last week steer calves under 600 lbs steady to 4.00 higher over 600 lbs steady to 3.00 lower in a light test. Heifer calves under 600 lbs uneven to 3.00 lower over 600 lbs steady in a light test.  Yearling steers and yearling heifers light test and not fully established comparison.  Slaughter cows mostly 3.00 lower with light demand however high dressing lean cows steady with good demand.  Slaughter bulls steady in a light test.