CBOT futures closed lower except for a 0.2% gain in soybean meal futures. Wheat dropped 2 percent. Futures were under pressure from the bearish outside markets: stronger US Dollar, a 5% drop in China’s Shanghai Index, and the sharply lower crude oil futures (new 12-year low price). Traders are faced with plentiful global grain/oilseed supplies and no real threatening weather to be found. Tomorrow’s USDA crop reports are also keeping traders cautious for any big surprises. The speculative funds are very large shorts in corn and soybeans and had a record short position in Chicago wheat as of last Tuesday per Friday’s CFTC report.

Cattle futures closed lower except for the nearby January Feeder Cattle contract. Markets started the day weak, rallied through late-morning, and then sold off into the close. The closing prices ended up near today’s opening quotes. Today’s futures weakness is a continuation of the slight downtrend charted last week. Also, fed cattle were lightly traded Friday at lower prices, down $1-2/cwt. Boxed beef continues to rise in value. Choice ended up 3.12 at 235.32 and Select gained 2.09 to 229.07. A week ago, Choice was 218.06 and Select was 211.01, or $17-18/cwt lower than today’s quotes. The recent low in the boxed beef market was on December 21 with Choice at $191.28 and Select at $183.93.

Lean Hog futures closed little changed from Friday after trading lower throughout the morning in line with cattle futures. FOB Plant Pork closed up .52 at 70.47 with strong gains in the value of hams and bellies.

Corn Mar -5 352 (349-57); Jly -5 363; Dec -4 378 Bean Mar -4 861 (859-70); Jly -4 870; Nov -5 874 Meal +1 270 Oil -7 1177 Wheat Mar -9 469; Jly -9481 (478-93) KC -10 462; MGE -8 493 Oats -12 199 Rice -7 1177

LC Feb -65 13222; Jun -25 12402; Aug -37 12010 FC Jan +2 15945; Apr -57 15680; Aug -72 15827 LH Feb -15 5970; Apr +25 6547; Jun +17 7725 Milk Jan +4 1372; Feb -10 1345

 

US$ +.4% Dow +52 16399 SP +2 1924 NAS -6 4638 Tran -32 6915 VIX -2.71 24.30 -10%

WTI -203 3113 Brent -221 3134 Gas -2 111 NG -11 236 HO -4 101 Eth -2 132 Gold -4 1094 Slvr -7 1385

2-yr -.012 0.936% 5-yr +.016 1.594% 10yr +.044 2.175% 30yr +.048 2.969%