Since the markets opened at 930 am CT, CBOT futures have moved substantially lower and are now at or near the day’s lows.  Outside markets are mixed with sharply higher energy prices, a steady US$, and a weak US equity market.

Some selling pressure could be profit-taking on long positions due to 2013 having higher tax rates.  End of year trading and position changes will keeping markets interesting through next Monday the last trading day of 2012.

Cattle futures are trading mixed with feeders benefiting from the lower CBOT futures.

Lean hog futures are little changed today but posted a nice rally on Monday, pushing February futures toward chart resistance at the November high of $88.25.

The sharp jump in the VIX shows traders are worried that the “fiscal cliff” negotiation will be unsuccessful and could cause a serious market reaction to force legislators and the President to get the job done right.  VIX is a measure of “fear” and “price insurance” (relative cost of put options).

Corn Mar -8 696; Jly -8 696; Dec -6 601

Bean Jan -9 1432; Jly -12.5 1409; Nov -7 1302 Meal Jan -3.4 431.4; Oct unch 373 OIL -37 4857

Wheat Mar -14 780; Jly -14 796 KC -14 830; MGE -9 872

LC Dec +7 12925; Feb +32 13355; Oct -2 13507 FC Jan +57 15207; Apr +55 15652; Aug +7 16187

LH Feb +15 8770; Apr +10 9175; Jly -27 10000

Milk Jan -10 1827; Feb -6 1839

Oats -6 359

Rice -9 1525

US$ steady

Dow -.4%

SP -.6%

NAS -.7%

Tran -.3%

VIX +5.3% 19.57

WTI +2.6%

Brent +1.7%

Gas +1.9%

NG +.8%

HO +1.8%

Eth -.4%

Gold +.2%

Slvr +.3%

5-yr -.008 0.751% 10yr -.006 1.750% 30yr -.003 2.922%