The CBOT futures market was driven by the soy complex.  Soybeans rallied strongly during the morning on higher-than-expected export shipments reported for last week. However, soybeans backed off the day’s highs after the NOPA Soybean Crush report was just short of average expectations. While the fundamental picture for soybeans and soybean meal remains positive in the short-run, there is risk that China cancels US purchases once it is confident in a South American soybean crop.

Corn futures turned green on the screen just for a moment today and closed weakly into the close.  Traders have the same worries they had late last week which helped erase most of the rally made in the first-half of December: Chinese corn cancellations, attacks on ethanol in Congress and expectations that the 2013/14 carryout will be raised in the January 2014 WASDE report.  Last week’s corn export shipments were disappointing at 25 million bushels compared to forecasts over 33 million bushels. March Corn futures are trading just above key chart support; December Corn made new contract lows.

Wheat futures closed down sharply as both fundamentals and chart technicals are bearish. The world has plenty of wheat and the big money players appear to be selling wheat futures daily. Further losses in March CBOT Wheat could point it toward $5.90.  However, a short-covering rally could occur anytime.

Cattle futures closed higher on improving boxed beef values. The afternoon report shows Choice carcasses up 1.08 at 199.97; Select up 1.40 at 188.41/cwt.  January Feeder Cattle surged on weaker CBOT futures and a friendly chart pattern that leaves another $1.00-1.50 room to run.

Lean Hog futures traded lower – weighed by the February LH contract’s significant premium to the weakening cash hog value. Some chart support could come in at 85.00.  This weakness occurred despite stronger pork values today.  FOB Plant Pork Cutout soared 4.16 to $91.14/cwt due to higher values for hams, bellies and loins.

Corn Mar -2 423; Jly -2 438; Dec -2 450 (447-53) Bean Jan +10 1338; Jly +10 1294; Nov +4 1161 (1154-65) Meal Jan +6 439; Jly +5 410 Oil -8 3975 Wheat Mar -7 622; Jly -8 629 (629-637) KC -7 665; MGE -6 654 Oats +5 345 Rice unch 1555

LC Dec +12 13200; Apr +55 13435; Jun +27 12897 FC Jan +132 16840; Apr +55 16795; Aug +32 16925 LH Feb -55 8662; Apr -42 9107; Jun -50 9900 Milk Dec -4 1898; Jan +13 1865

US$ -.1%

Dow +129 15885 SP +11 1787 NAS +29 4030 Tran +65 7151 VIX +.27 16.03

WTI +88 9748 Brent +164 11047 Gas +1 264 NG -7 428 HO +1 299 Eth +1 178

Gold +10 1245 Slvr +36 1992

2-yr +.01 0.34% 5-yr +.01 1.54% 10yr +.01 2.88% 30yr +.02 3.90% 

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