The three major grains at the CBOT traded a variety of paths today. Corn rallied into midday but then sold off into the close and settled near the day’s lows. Soybean futures set highs overnight, sold off into the opening bell but rallied throughout the day to close mid-range. March Wheat soared during the 2 hours of pit trade and then traded sideways to close 4.5 cents off the high. 

Traders have a bunch of data to look but have no obvious direction to take prices. Weather over the next couple of weeks in Argentina could make a significant difference in soybean production. KS/NE/OK could see beneficial rainfall the next 10 days. A rumor hit the market that Russia had bought U.S. SRW wheat; U.S. gulf export basis levels increased today. Russia dropped its import duty of 5%. China heads into its New Year holiday on February 10th, so export sales activity could pause next week. On Friday, USDA will release its WASDE report. 

The Congressional Budget Office released its baseline projections for U.S. crop production which reminded traders how big the 2013 crops could be. The CBO’s average price forecast 2013/14 are corn, $4.51; soybean, $11.00; and wheat, $7.05.       See entire CBO Baseline for Farm Programs by Clicking Here.  

Cattle and hog futures fell sharply today. News reports credited more concern over Russia’s ban on U.S. beef and pork. Boxed beef values weakened today after Tuesday’s one-day rally. The Pork Cutout dropped severely for the third day. Today’s $82.41/cwt is down $1.75 from Tuesday and compares to $86.81 last Friday. Drops in belly and loin prices are primarily responsible for this.

KENTUCKY CASH GRAIN BIDS – Click Here

Corn Mar -6.5 722.5; Jly -7 715; Dec -11 579 Bean Mar -8 1487.5; Jly -8 1468.5; Nov -12 1336   Meal Mar -1 437; Oct -4.5 376.4   Oil -53 5245 Wheat Mar +4 761.5; JLy +4 772; Dec +.5 795.5   KC +2.5 810;  MGE +3 845 

LC Feb -35 12725; Apr -85 13145; Oct -90 13220 FC Mar -97 14755; Apr -110 15092; Aug -110 15942 LH Feb -142 8690; Apr -145 8625; Jly -140 9520 Milk Feb +14 1726; Mar +39 1738

Oats +11.5 378 Rice +5 1620  

US$ +.3% Dow +7 13986 SP +1 1512 NAS -3 3168 Tran -11 5873    VIX -.31 13.41

WTI +22 9686 Brent +35 11687 Gas +1.5 305 NG +4 344 HO steady 319 Eth -1.4 243

Gold +5 1677 Slvr -1 3186

2-yr -.011 0.254% 5-yr -.030 0.838% 10yr -.038 1.964% 30yr -.038 3.171% 

Mt. Sterling, KY Blue Grass East Stockyards Cattle Auction Report for 2/06/2013    Cattle Receipts:  561   Last Week:  549   Weekly Receipts:  778          Compared to last week steer and heifer calves sold about steady on good quality offerings, however more plain cattle on the market today compared to last week.  Yearling steers limited comparison and yearling heifers no comparison.  Slaughter cows sold 2.00 to 4.00 higher with very good demand.  Slaughter bulls sold steady to 2.00 higher with good demand. 

Refiners Gain From Energy Rally at Consumers' Expense    CNBC.com reports:  “If gas prices nationally average $3.60 a gallon or higher until the end of the month, it will cost consumers an extra $10 billion in the first quarter, says Moody's Analysts chief economist Mark Zandi.   Add that to the additional taxes Americans are paying this year and, Zandi says, that's "almost half a percentage point" of the U.S. GDP.”   Read More: http://www.cnbc.com/id/100439950/