CBOT futures rallied in the last hour of the session to close near the day’s highs. Last week’s strong export inspections for the U.S. reported this morning and ideas that improved South American weather will be short-lived supported the market.

Cattle futures soared today on a combination of a bullish Cattle on Feed report on Friday and the agreement between the U.S. and Japan to allow beef imports from cattle up to 30 months of age. February Live Cattle are now $4 higher than the low traded 5 days ago. Boxed beef has not responded yet --

Choice UP 0.17 at 187.61; Select UP 0.56 at 182.42/cwt.

Lean Hog futures managed small gains on spillover support from the cattle pit. The cash hog market and pork values are giving mixed signals. Traders still hope for seasonal strength to appear. 

Corn Mar +8.5 729 (719-730);Jly +8 720; Dec +6 590 Bean Mar +7 1448 (1435-1452); Jly +5 1423; Nov +7 1310 (1298-1311)   Meal Mar +4 420; Oct +3 367   Oil -21 5189 Wheat Mar +3 779; Jly +4 792.5 (784-795.5)   KC +3 833; MGE +1 866

LC Feb +265 12895; Apr +265 13340; Oct +147 13300 FC Jan +110 14580; Apr +215 15330; Aug +177 16135 LH Feb +35 8717; Jly +55 9762 Milk Jan unch 1812; Feb +3 1705

Oats -2 361 Rice -13 1535

US$ +.05%

Dow -14 13882 SP -3 1500 NAS +5 3154 Tran +5 5876   VIX +.68 13.57

WTI +64 9652 Brent +16 11344 Gas +5 292.4 NG -17 327 HO unch 306 Eth +3 240

Gold -3 1653 Slvr -37 3083

2-yr unch 0.288% 5-yr +.013 0.867% 10yr +.010 1.962% 30yr +.008 3.142%

JAPAN AND U.S. REACH AGREEMENT ON BEEF IMPORTS     U.S. officials confirmed Monday that Japan will now allow imports of beef from cattle less than 30 months of age, compared with the current limit of 20 months.  Trade officials said the change is expected to boost the export of U.S. beef to Japan by "hundreds of millions of dollars" in the coming years.  The deal takes effect Friday.  Canada also reached a deal Monday to expand its beef exports to Japan.

Blue Grass Stockyards Cattle Auction Report for 01/28/2013  Receipts:  819   Last Monday:  1,320   Year Ago:  1,275

   Compared to last week, steer calves sold steady to 2.00 higher with moderate demand.  Heifer calves sold steady to 4.00 higher with advance on 500-700 lbs with moderate to good demand.  Yearling steers and heifers not tested.  Slaughter cows and slaughter bulls sold steady with good demand.

   Total supply included 08% slaughter cows, less than 01% slaughter bulls, less than 01% replacements and 90% feeders.  Feeder supply 22% steers, 27% bulls, 51% heifers with 37% of feeders weighing over 600 lbs.