The 3 main commodities at the CBOT ended up with entirely different situations. Soybean futures closed higher thanks to market leadership from Soybean Meal futures. Soybean basis levels are unusually strong for this time of year indicating supply tightness. Corn futures traded higher early in the morning but sold off sharply by the end of trading. This is somewhat perplexing but probably can be blamed on funds liquidating May contracts as we approach the delivery month. The new-crop December Corn contract was turned back by its 20-day moving average.

Given this week’s heavy precipitation and this afternoon’s positive Drought Outlook (see below), will traders begin to think 2013 production should be close to “normal”? However, next week is expected to remain colder than normal, so corn planting progress will likely remain behind normal.

Tonight is a critical time for HRW wheat in the southern Plains as freezing temperatures are expected.

Cattle futures also started the day higher, but worked lower throughout the day. Boxed beef reversed yesterday’s gains. Traders may have reduced positions ahead of tomorrow afternoon’s Cattle on Feed Report. The April 1 on-feed inventory is expected to be 93.9 pct of a year earlier.

Lean Hog futures closed little changed. While there’s optimism that cash markets should improve, May LH futures are already at over $6/cwt premium to the Lean Hog Index.

The cold end to April will continue to hinder “grilling” demand for beef and pork.

Corn May -16 644.5; Jly -11.5 630; Dec -6 541 Bean May +8 1430.5; Jly +10 1390; Nov +5.5 1223.5    Meal May +4 411; Oct +2.4 340.5   Oil +27 4966 Wheat May -1 703; Jly unch 707; Dec unch 727.5   KC Jly +1.5 749; MGE +3.5 802 Oats +1 379 Rice -15 1537

LC Apr -67 12620; Aug -45 12177; Dec unch 12697 FC Apr -207 13445; May -85 14005; Aug -32 14717 LH May -17 8795; Jly +20 9080; Oct -5 8110 Milk Apr -1 1765; May -4 1925 

Beltway News from KY Farm Bureau – Click Here    Farm Labor Reforms in Immigration Reform Bill 

FINAL 2013 KFB LEGISLATIVE REPORT now available – Click Here  

US$ -.1% Dow -81 14537 SP -10 1542 NAS -38 3166 Tran -5 5944   VIX +1.05 17.56 (+6.3%)

WTI +105 8773 Brent +177 9946 Gas +3 275.5 NG +19 440 HO +4.5 278 Eth unch 246

Gold +10 1392 Slvr -6 2324

2-yr unch 0.23% 5-yr unch 0.69% 10yr -.01 1.69% 30yr -.01 2.86%

Diesel Fuel Prices Fall for 7th Straight Week      During the week ending April 15, U.S. average diesel fuel prices fell 3 cents from the previous week to $3.94 per gallon—19 cents lower than the same week last year. Diesel fuel prices have fallen 22 cents during the past 7 weeks.  Lower global crude oil prices in March have put downward pressure on prices.  (Grain Transportation Report, April 18, 2013) 

May – July Weather Outlook from NWS Climate Prediction Center    Today’s NWS 3-month update calls for normal precipitation and above-normal temperatures for corn & soybean country.  See the maps by clicking on http://www.cpc.ncep.noaa.gov/products/predictions/long_range/seasonal.php?lead=1 

KENTUCKY CASH GRAIN BIDS – Click Here