The markets responded quickly and sharply to the 11:00 am CST USDA WASDE report even though most of the USDA estimates were near traders’ expectations or better.  While wheat prices were falling ahead of the report, corn and soybean futures were steady to higher.  Upon release of the report, corn and soybean prices briefly rose but then fell sharply, following the lead of wheat futures. Many called today’s price action a “buy the rumor, sell the fact” trade.

2013/14 ending stocks for corn was dropped 95 million bushels from the November forecast.  USDA raised corn use by 50 million for exports and 50 million for ethanol use. This should have been friendly to futures but wheat and soybeans weighed corn down. Wheat futures are setting new lows.

Cattle futures traded both sides of unchanged on uncertain fundamentals, and closed with small changes.  Boxed beef slipped lower with Choice down 0.40 at 202.12 and Select down 0.11 at 188.01/cwt. Corn Mar -2 436 (431-41); Jly -2 452; Dec -2 465 Bean Jan -5 1338 (1330-53); Jly -8 1291; Nov -5 1167 Meal Jan unch 438; July -3 407 Oil -11 4011 Wheat Mar -12 639 (635-652); Jly -11 642 (641-654) KC -12 684; MGE -9 668 Oats +4 336 Rice +5 1556

LC Dec +7 13167; Apr -17 13385; Jun -2 12880 FC Jan +40 16555; Apr +10 16637; Aug -12 16777 LH Dec -55 8082; Feb -112 8872; Jun -40 10017 Milk Dec -11 1900; Jan -16 1853

US$ -.3%

Dow -52 15973 SP -6 1803 NAS -8 4060 Tran -53 7173

WTI +133 9867 Brent +14 10953 Gas unch 267 NG +2 425 HO steady 302 Eth -1 200

Gold +29 1264 Slvr +66 2030

2-yr unch 0.30% 5-yr -.03 1.45% 10yr -.04 2.80% 30yr -.04 3.83% Blue Grass Stockyards Cattle Report for 12/10/2013 Receipts:  1,070   Last Tuesday:  1,878   Year Ago:  1,086

Compared to Monday steer calves sold 5.00 higher with very good demand, market very active for calves under 600 lbs and yearlings.  Heifer calves sold mostly steady to 2.00 higher with advance on featherweight calves in a limited comparison with yesterday’s light test.  Yearling steers compared to last week sold steady to 3.00 higher with most advance on yearling 600-700 lbs.  Yearling heifers sold steady in a limited comparison.  Slaughter cows sold steady with good demand.  Slaughter bulls sold steady with moderate demand.

Total supply included 04% slaughter cows, less than 01% slaughter bulls, less than 01% replacements and 95% feeders.  Feeder supply 59% steers, 12% bulls, 29% heifers with 67% of feeders weighing over 600 lbs. 

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