Soy complex futures closed sharply lower on selling spurred by profit-taking, negative chart action and a cancellation by China of a 2012/13 export soybean purchase. Is China playing games again to buy soybeans cheaper?

Soy losses weighed on corn and wheat futures but the latter crops were able to bounce off the day’s lows.  March CBOT Wheat bounced off chart support at last week’s low and closed higher. Watch the amount of snow/rain received in the Plains in the coming days; a lot of moisture is needed but if the pattern turns wetter, some buyers may back away.

Live Cattle futures traded higher in the morning in follow-through buying from Monday’s strong close.  However, midday reports of weaker Choice box beef turned the tide to selling.  The December LC contract’s large premium to Friday’s cash steer price could weigh on futures if boxed beef doesn’t rally.

Lean Hog futures closed moderately higher as cash hog prices and the pork cutout value increased today. Wintry weather in the forecast was supportive.

Corn Mar -4 720; Jly -3 722; Dec +1 623

Bean Jan -30 1466; Jly -19 1432.5; Nov -9 1310 Meal Jan -10.5 445;  Oct -3 371 Oil -62 4917

Wheat Mar +3 811; Jly +2 829; Dec unch 853 KC +4 860; MGE +5 901

LC Dec -77 12822 (12815-12950); Apr -45 13712; Oct -85 13575 FC Jan -205 15220; Apr -157 15607; Aug -85 16170

LH Feb +52 8527; Apr +47 9027; Jly +75 9992

Milk Dec +5 1868; Jan +21 1802

Oats -9 380

Rice -5 1515

US$ -.3%

Dow +116 13350

SP +16 1447

NAS +44 3055

Tran +84 5311

VIX -.77  15.57

WTI +69 8836

Brent +130 10894

Gas +3.5 269

NG +3.4 339

HO +4.3 300

Eth -2 226

Gold -27 1671

Slvr -60

5-yr +.03 0.76% 10yr +.06 1.83% 30yr +.07 3.02%

Blue Grass Stockyards Cattle Report for 12/18/2012  Close Receipts:  548   Last Tuesday:  1,086   Year Ago:  729

**Bluegrass Stockyards Lex. will be closed for Holidays Dec. 24-Jan. 6 and will resume Jan. 7, 2013.

Compared to Monday, steer calves sold steady to 2.00 higher in a light test with very good demand.  Heifer calves sold firm with good demand in a light test.  Yearling steers sold steady with good demand.  Yearling heifers not fully established.  Slaughter cows sold 1.00 higher with good demand.  Slaughter bulls sold steady with moderate demand.

Total supply included 07% slaughter cows, 01% slaughter bulls, 01% replacements and 91% feeders.  Feeder supply 43% steers, 10% bulls, 47% heifers with 60% of feeders weighing over 600 lbs.